In 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. The lending institution gives you money based on the equity you've built-up in your home; you receive a lump sum, a payment each month or a line of credit. The loan does not have to be paid back until the homeowner sells his home, moves out, or passes away. You or representative of your estate has to pay back the reverse mortgage amount, interest , and other finance fees after your house is sold, or you can no longer call it your primary residence.
The requirements of a reverse mortgage often are being sixty-two or older, maintaining your house as your main residence, and holding a small remaining mortgage balance or owning your home outright.
Reverse mortgages can be great for retired homeowners or those who are no longer bringing home a paycheck and need to supplement their income. Rates of interest may be fixed or adjustable and the funds are nontaxable and do not interfere with Medicare or Social Security benefits. The residence is never at risk of being taken away from you by the lending institution or sold without your consent if you live longer than your loan term - even if the current property value creeps under the balance of the loan. Contact us at 504-866-5626 if you would like to explore the advantages of reverse mortgages.
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