With a reverse mortgage (sometimes called a home equity conversion loan), borrowers of a certain age may use home equity for anything they need without selling their homes. The lending institution gives you money determined by the equity you've accrued in your home; you receive a lump sum, a monthly payment or a line of credit. The loan does not have to be paid back until the borrower sells his home, moves away, or dies. When your home has been sold or you no longer use it as your main residence, you (or your estate) are obligated to pay back the lender for the money you obtained from the reverse mortgage plus interest among other finance charges.
The requirements of a reverse mortgage loan typically are being 62 or older, using the property as your primary living place, and having a low remaining mortgage balance or having paid it off.
Reverse mortgages are great for retired homeowners or those who are no longer working and have a need to supplement their limited income. Social Security and Medicare benefits aren't affected; and the money is not taxable. Reverse Mortgages may have adjustable or fixed interest 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 longer than the loan term - even if the property value goes under the balance of the loan. Contact us at (718) 639-9500 if you'd like to explore the benefits of reverse mortgages.
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