With a reverse mortgage loan (also called a home equity conversion loan), borrowers of a certain age may use home equity for living expenses without selling their homes. Choosing between a monthly amount, a line of credit, or a one-time payment, you may take out a loan based on your equity. Repayment isn't necessary until the time the homeowner puts his home up for sale, moves (such as into a retirement community) or dies. When your home has been sold or you no longer use it as your primary residence, you (or your estate) must repay the lender for the funds you got from your reverse mortgage as well as interest and other fees.
The conditions of a reverse mortgage often include being sixty-two or older, maintaining the property as your main residence, and holding a low remaining mortgage balance or owning your home outright.
Reverse mortgages can be advantageous for retired homeowners or those who are no longer working but need to supplement their fixed income. Social Security and Medicare benefits aren't affected; and the funds are not taxable. Reverse Mortgages may have adjustable or fixed rates. Your residence can never be at risk of being taken away by the lending institution or sold against your will if you outlive your loan term - even if the current property value creeps below the balance of the loan. Contact us at (718) 639-9500 if you want to explore the advantages of reverse mortgages.
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