Reverse mortgages (sometimes called "home equity conversion loans") enable older homeowners to use their equity without the necessity of selling their home. The lending institution gives you funds based on the equity you've built-up in your home; you receive a lump sum, a monthly payment or a line of credit. Paying back your loan isn't necessary until when the borrower sells the property, moves (such as into a retirement community) or dies. You or representative of your estate must pay back the reverse mortgage loan, interest accrued, and finance fees after your property is sold, or you are no longer living in it.
The conditions of a reverse mortgage generally are being sixty-two or older, maintaining the house as your primary residence, and having a small balance on your mortgage or having paid it off.
Reverse mortgages are great for retired homeowners or those who are no longer bringing home a paycheck and have a need to supplement their limited income. Social Security and Medicare benefits are not affected; and the funds are nontaxable. Reverse Mortgages can have adjustable or fixed rates. Your home is never at risk of being taken away by the lending institution or sold against your will if you outlive the loan term - even if the current property value goes below the loan balance. Contact us at 504-866-5626 if you want to explore the benefits of reverse mortgages.
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