With a reverse mortgage loan (also referred to as a a home equity conversion loan), homeowners of a certain age may use home equity for living expenses without having to sell their homes. Choosing between a monthly amount, a line of credit, or a lump sum, you can receive a loan amount determined by your equity. The loan does not have to be paid back until the borrower sells the residence, moves out, or passes away. You or representative of your estate has to repay the reverse mortgage loan, interest accrued, and other finance charges when your home is sold, or you can no longer use it as your primary residence.
Usually, reverse mortgages require youto be at least 62 years of age, have a low or zero balance owed against the home and maintain the house as your principal residence.
Homeowners who live on a fixed income and find themselves needing additional funds find reverse mortgages helpful for their circumstance. Social Security and Medicare benefits aren't affected; and the funds are not taxable. Reverse Mortgages can have adjustable or fixed interest rates. Your house will never be at risk of being taken away from you by the lending institution or sold without your consent if you outlive the loan term - even if the property value creeps below the balance of the loan. Call us at (337) 453-0012 if you want to explore the benefits of reverse mortgages.
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