REVERSE MORTGAGES IN LOUISIANA
You may not be aware that there is a legal, safe, and effective way to be paid to remain in your home throughout your retirement for as long as you occupy the property — a Reverse Mortgage.
The program is open to all seniors over the age of 62 who have equity in their principal residence and wish to obtain up to $726,525 under FHA terms or more under private terms.
We can assist you with using a reverse mortgage to prepare for a long and fruitful retirement using the equity in your home.
WHAT IS A REVERSE MORTGAGE?
A reverse mortgage is a non-recourse loan that allows homeowners aged 62 and older to convert home equity into cash or as a means to purchase a new home without having to worry about paying a monthly note. This type of mortgage does not require the homeowner to make loan payments, unlike a forward mortgage used to buy a home. The loan balance becomes due and payable in one of the three following cases:
- When the borrower dies
- After they move permanently
- If they sell the home
PARTIES INVOLVED IN A REVERSE MORTGAGE
There are always at least three parties involved in a reverse mortgage:
- the borrower
- the lender
- and the title company.
Frequently, real estate agents are involved in providing guidance to homeowner borrowers as well.
PROS AND CONS OF USING REVERSE MORTGAGE
Consider that a reverse mortgage has a number of very attractive features for seniors, such as:
- The borrower can remain in their home until they die
- No income or credit verification
- You can choose how you want to take your funds
- No monthly or annual payments
- Repayment is made once the borrower dies or moves out of the house
- Proceeds are tax-free and can be in a lump sum, stream of payments, line of credit, or combination thereof
- Interest may be tax deductible on loan repayment (consult tax advisor for details)
- The loan is fully insured by the federal government
- The heirs still inherit the home • the loan proceeds can pay off existing mortgages
- Great for seniors whose net worth is tied up in the value of their home
- The process does not impact
- Social security or medicare
Recent changes to the program also allow you to purchase a property and never make a payment, with the down payment amount decreasing according to age. For example, a 62-year-old person could make a 38% down payment on a property and never make another payment again. In many cases the sale of the first home could cover the cost of the down payment, leaving you with one less payment to worry about every month during your retirement.
Contact us to learn about how you could potentially spend the rest of your life in your home and never pay the bank a penny more. In fact, you will be paid to remain in your home. Alternatively, you can sign up for our Louisiana Real Estate Commission licensed reverse mortgage seminar on reverse mortgages to earn CE credits if you are a Louisiana licensed real estate broker or agent.
REVERSE MORTGAGE SERVICES IN LOUISIANA
If you are looking for Reverse Mortgage services in LA, don’t hesitate to contact Southern Title. We will ensure that your loan runs smoothly by overseeing an array of administrative duties.
Even though reverse mortgages are incredibly beneficial to seniors, they can also be rather complex, especially if you’re trying to do everything on your own, which can cost you a lot of money and stress in the long run.