Baton Rouge Reverse Mortgage
Enjoying Retirement with a Baton Rouge Reverse Mortgage
Couple enjoyes their retirement with a Baton Rouge Reverse Mortgage
For those who own their homes, a Baton Rouge reverse mortgage can help eliminate any pre-retirement debt and make life easier financially. This is especially helpful for those who were forced into early retirement without sufficient preparation or who worked for a company that did not provide a retirement plan.
If you have paid off your home or have built sufficient equity, a Baton Rouge reverse mortgage can help make your retirement more enjoyable. Many people actually delay retirement because they are unable to afford the decrease in income that often accompanies this lifestyle change, especially for those who may still have children in college or debts to repay. However, in Baton Rouge there is hope for homeowners who find themselves in the same situation. With a Baton Rouge reverse mortgage retirees can not only eliminate their debts but also increase their cash flow.
How to Use the Funds from a Baton Rouge Reverse Mortgage
There are many different ways a homeowner can choose to use a Baton Rouge reverse mortgage. While many people choose to use the funds from their Baton Rouge reverse mortgage to simply defer the payments on their mortgage, a reverse mortgage from a Louisiana lender can provide so much more. Some of the other ways you can use the funds from your Baton Rouge reverse mortgage include the following:
* Vacation
* Vacation home
* New car
* Repayment of debts
* Medical expenses
* Purchase of a new primary residence
In addition, you have the option use the funds from your Baton Rouge reverse mortgage to increase your retirement cash flow. Since these funds are not classified as income, they are not subject to income taxes. Unlike a Louisiana home equity loan, you do not make monthly payments on your Baton Rouge reverse mortgage.
Qualifications for a Baton Rouge Reverse Mortgage
Not everyone who owns a home will qualify for a Baton Rouge reverse mortgage. In addition to owning the home in which you live, both husband and wife must be at least 62 years old. While it is possible to use funds from your Baton Rouge reverse mortgage to buy a vacation home, you must still maintain the primary residence that secures the reverse mortgage.
In January 2009 HUD changed one of the guidelines of reverse mortgages that would allow a homeowner to use the proceeds from his Baton Rouge reverse mortgage to purchase a new home. This allows those who are living a home that is larger than they need or is not equipped to handle their health needs to purchase a smaller home or condominium that is designed to meet their needs. While there are no income or credit qualifications, the homeowner must be able to pay the closing costs and have enough disposal income to cover the property taxes and insurance on the new residence. This provision is not to allow seniors to move into multiple-family residences but rather to allow them to purchase properties that are more suited to their needs. Now go enjoy your retirement with the use of a Baton Rouge Reverse Mortgage.
