Reverse mortgages (also referred to as "home equity conversion loans") give older homeowners the ability to tap into built-up equity without selling their home. Choosing between a monthly payment, a line of credit, or a one-time payment, you may receive a loan based on your equity. The borrowed money doesn't have to be paid back until the homeowner sells the residence, moves away, or passes away. At the time your house sells or is no longer used as your main residence, you (or your estate) have to repay the lender for the cash you received from the reverse mortgage in addition to interest among other fees.
The requirements of a reverse mortgage typically are being 62 or older, using the house as your primary residence, and holding a small remaining mortgage balance or owning your home outright.
Homeowners who live on a fixed income and need additional money find reverse mortgages ideal for their circumstance. Social Security and Medicare benefits can't be affected; and the money is nontaxable. Reverse Mortgages may have adjustable or fixed rates. The residence is never at risk of being taken away from you by the lender or sold against your will if you live past the loan term - even if the current property value dips under the loan balance. Call us at 504-866-5626 if you want to explore the benefits of reverse mortgages.
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