In a reverse mortgage loan (sometimes called a home equity conversion loan), homeowners of a certain age may use home equity for living expenses without having to sell their homes. The lender gives you money based on your home equity amount; you receive a one-time amount, a monthly payment or a line of credit. The loan doesn't have to be repaid until the homeowner sells his residence, moves away, or dies. You or your estate representative is required to repay the reverse mortgage amount, interest , and finance charges at the time your property is sold, or you are no longer living in it.
Generally, reverse mortgages require you be at least sixty-two years old, have a low or zero balance owed against the home and use the home as your main residence.
Reverse mortgages can be helpful for retired homeowners or those who are no longer bringing home a paycheck and have a need to add to their fixed income. Social Security and Medicare benefits are not affected; and the funds are not taxable. Reverse Mortgages can have adjustable or fixed rates. Your house is never in danger of being taken away from you by the lender or sold without your consent if you live past your loan term - even if the current property value creeps below the balance of the loan. Call us at (718) 639-9500 if you want to explore the benefits of reverse mortgages.
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