Reverse mortgages (also called "home equity conversion loans") give older homeowners the ability to tap into built-up home equity without the necessity of selling their home. The lender pays out money determined by the equity you've built-up in your home; you receive a lump sum, a payment each month or a line of credit. Repayment is not necessary until when the borrower sells the property, moves (such as to a retirement community) or passes away. You or your estate representative is obligated to pay back the reverse mortgage loan, interest accrued, and other finance fees when your house is sold, or you can no longer call it your primary residence.
Usually, reverse mortgages are available for borrowers who are at least sixty-two years old, have a small or zero balance in a mortgage and use the property as your principal residence.
Reverse mortgages are ideal for retired homeowners or those who are no longer bringing home a paycheck but must add to their limited income. Rates of interest may be fixed or adjustable while the funds are nontaxable and don't interfere with Medicare or Social Security benefits. Your lending institution will not take the property away if you outlive your loan nor may you be required to sell your residence to repay your loan amount even if the loan balance grows to exceed property value. Contact us at 504-866-5626 if you would like to explore the benefits of reverse mortgages.
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