Is a Reverse Mortgage for You?
Looking for a loan? We'll be glad to talk about our mortgage offerings! Give us a call at (504) 832-3131. Ready to begin? Apply Here
In a reverse mortgage (sometimes referred to as a a home equity conversion loan), borrowers of a certain age may use home equity for anything they need without having to sell their homes. Choosing between a monthly payment amount, a line of credit, or a one-time payment, you may take out a loan based on your home equity. The loan does not have to be paid back until the homeowner sells his home, moves out, or passes away. You or your estate representative has to pay back the reverse mortgage amount, interest accrued, and finance charges after your property is sold, or you are no longer living in it.
Who is Able to Participate?
Typically, reverse mortgages are available for homeowners at least 62 years of age, have a low or zero balance in a mortgage and use the house as your principal living place.
Reverse mortgages are great for homeowners who are retired or no longer working and need to supplement their fixed income. Social Security and Medicare benefits can't be affected; and the funds are nontaxable. Reverse Mortgages may have adjustable or fixed rates. Your house will never be in danger of being taken away from you by the lender or put up for sale without your consent if you live past the loan term - even if the property value creeps below the balance of the loan. Call us at (504) 832-3131 if you want to explore the advantages of reverse mortgages.
At Southwest Funding, we answer questions about reverse mortgages every day. Call us at (504) 832-3131.