With a reverse mortgage loan (sometimes called a home equity conversion loan), borrowers of a certain age may use home equity for anything they need without having to sell their homes. Choosing between a monthly payment amount, a line of credit, or a lump sum, you can take out a loan amount determined by your equity. Repayment isn't necessary until the time the borrower sells the property, moves (such as into a care facility) or passes away. After you sell your property or you no longer use it as your main residence, you (or your estate) have to pay back the lending institution for the money you received from your reverse mortgage plus interest among other finance charges.
The requirements of a reverse mortgage typically include being sixty-two or older, maintaining your property as your main living place, and having a low remaining mortgage balance or owning your home outright.
Reverse mortgages are appropriate for retired homeowners or those who are no longer bringing home a paycheck and have a need to supplement their limited income. Rates of interest may be fixed or adjustable and the funds are nontaxable and don't affect Social Security or Medicare benefits. Your lender can't take away your home if you live past the loan term nor will you be obligated to sell your residence to pay off your loan amount even when the loan balance is determined to exceed property value. Call us at 504-866-5626 if you'd like to explore the advantages of reverse mortgages.
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