Reverse mortgages (also referred to as "home equity conversion loans") give older homeowners the ability to tap into equity without the necessity of selling their home. Deciding how you would prefer to to receive your funds: by a monthly amount, a line of credit, or a one-time payment, you can take out a loan based on your equity. Paying back your loan is not necessary until when the homeowner puts his home up for sale, moves (such as to a retirement community) or dies. When you sell your property or you no longer use it as your primary residence, you (or your estate) must repay the lending institution for the cash you received from the reverse mortgage plus interest and other fees.
Usually, reverse mortgages are offered to homeowners at least 62 years of age, have a small or zero balance owed against the home and maintain the house as your principal living place.
Reverse mortgages can be advantageous for homeowners who are retired or no longer bringing home a paycheck and have a need to add to their income. Interest rates may be fixed or adjustable while the money is nontaxable and does not affect Social Security or Medicare benefits. Your home is never in danger of being taken away from you by the lending institution or sold against your will if you live past your loan term - even if the property value creeps under the balance of the loan. Call us at 504-866-5626 to explore your reverse mortgage options.
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