In a reverse mortgage loan (sometimes referred to as a a home equity conversion loan), borrowers of a certain age may use home equity for living expenses without having to sell their homes. The lending institution gives you money determined by your home equity amount; you get a one-time amount, a payment every month or a line of credit. The loan doesn't have to be repaid until the homeowner sells the home, moves out, or passes away. You or your estate representative is required to repay the reverse mortgage amount, interest accrued, and other finance fees when your house is sold, or you no longer live in it.
The requirements of a reverse mortgage loan typically are being 62 or older, using the house as your main residence, and holding a small balance on your mortgage or having paid it off.
Reverse mortgages can be ideal for retired homeowners or those who are no longer working but must supplement their fixed income. Rates of interest can be fixed or adjustable while the money is nontaxable and does not adversely affect Medicare or Social Security benefits. Your lending institution will not take away your residence if you outlive your loan nor may you be forced to sell your residence to repay your loan amount even when the loan balance grows to exceed property value. Call us at 504-866-5626 to explore your reverse mortgage options.
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