In a reverse mortgage (also called a home equity conversion loan), homeowners of a certain age may use home equity for living expenses without selling their homes. The lending institution gives you money determined by your home equity amount; you receive a one-time amount, a monthly payment or a line of credit. The borrowed money does not have to be paid back until the homeowner sells the residence, moves out, or passes away. You or your estate representative is required to repay the reverse mortgage funds, interest , and other finance fees when your home is sold, or you are no longer living in it.
Most reverse mortgages require youto be at least sixty-two years of age, have a low or zero balance owed against your home and use the house as your main living place.
Reverse mortgages can be appropriate for retired homeowners or those who are no longer bringing home a paycheck but must add to their fixed income. Social Security and Medicare benefits won't be affected; and the money is nontaxable. Reverse Mortgages may have adjustable or fixed interest rates. Your lender is not able to take the property away if you outlive your loan nor can you be obligated to sell your residence to repay the loan even when the balance is determined to exceed current property value. Call us at (718) 639-9500 to look into your reverse mortgage options.
Do you have a question regarding a mortgage program?