Reverse mortgages (sometimes referred to as "home equity conversion loans") enable older homeowners to tap into built-up equity without the necessity of selling their home. Choosing between a monthly amount, a line of credit, or a one-time payment, you may get a loan amount determined by your equity. Repayment is not required until when the homeowner puts his home up for sale, moves (such as into a retirement community) or passes away. You or representative of your estate is required to pay back the reverse mortgage amount, interest , and other finance fees after your property is sold, or you can no longer use it as your primary residence.
The requirements of a reverse mortgage loan normally include being 62 or older, maintaining your home as your main residence, and holding a low remaining mortgage balance or having paid it off.
Homeowners who live on a limited income and find themselves needing additional funds find reverse mortgages helpful for their situation. Social Security and Medicare benefits are not affected; and the funds are not taxable. Reverse Mortgages can have adjustable or fixed rates. Your lending institution isn't able to take the property away if you live past the loan term nor may you be obligated to sell your residence to pay off your loan even when the balance is determined to exceed current property value. Call us at 504-866-5626 to explore your reverse mortgage options.
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