Reverse mortgages (sometimes called "home equity conversion loans") give older homeowners the ability to tap into built-up equity without the necessity of selling their home. Choosing between a monthly payment, a line of credit, or a one-time payment, you may get a loan based on your equity. Paying back your loan isn't required until the borrower puts his home up for sale, moves (such as to a care facility) or dies. You or your estate representative must pay back the reverse mortgage funds, interest , and finance charges after your house is sold, or you can no longer use it as your primary residence.
The requirements of a reverse mortgage generally include being 62 or older, maintaining your property as your primary living place, and holding a low balance on your mortgage or owning your home outright.
Reverse mortgages can be advantageous for retired homeowners or those who are no longer bringing home a paycheck but have a need to supplement their income. Social Security and Medicare benefits aren't affected; and the money is nontaxable. Reverse Mortgages can have adjustable or fixed interest rates. Your home is never in danger of being taken away from you by the lending institution or put up for sale against your will if you live past the loan term - even if the property value dips under the loan balance. If you'd like to find out more about reverse mortgages, feel free to call us at (337) 453-0012.
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