Reverse mortgages (sometimes referred to as "home equity conversion loans") enable older homeowners to benefit from their equity without selling their home. The lending institution gives you money based on your home equity amount; you get a one-time amount, a monthly payment or a line of credit. Repayment isn't required until when the homeowner puts his home up for sale, moves (such as to a retirement community) or passes away. You or an estate representative is required to pay back the reverse mortgage funds, interest accrued, and finance charges when your property is sold, or you can no longer use it as your primary residence.
Typically, reverse mortgages are available for homeowners who are at least 62 years old, have a small or zero balance in a mortgage and use the house as your principal living place.
Reverse mortgages can be great for retired homeowners or those who are no longer working but have a need to add to their limited income. Social Security and Medicare benefits aren't affected; and the money is nontaxable. Reverse Mortgages may have adjustable or fixed rates. The house is never in danger of being taken away by the lending institution or put up for sale against your will if you outlive the loan term - even if the property value dips below the loan balance. Contact us at 504-866-5626 to look into your reverse mortgage options.
Do you have a question regarding a mortgage program?