With a reverse mortgage (sometimes called a home equity conversion loan), homeowners of a certain age may use home equity for anything they need without selling their homes. The lender gives you money based on your home equity amount; you receive a one-time amount, a payment each month or a line of credit. Repayment isn't required until the borrower puts his home up for sale, moves (such as to a care facility) or passes away. You or representative of your estate is required to repay the reverse mortgage funds, interest , and finance charges at the time your house is sold, or you no longer live in it.
Usually, reverse mortgages are available for borrowers at least sixty-two years of age, have a low or zero balance in a mortgage and use the property as your main residence.
Reverse mortgages can be great for homeowners who are retired or no longer working and need to supplement their limited income. Interest rates may be fixed or adjustable and the money is nontaxable and does not interfere with Social Security or Medicare benefits. The lender will not take away your house if you live past the loan term nor may you be forced to sell your residence to pay off your loan even when the balance is determined to exceed property value. Call us at (718) 639-9500 to discuss your reverse mortgage options.
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