Reverse mortgages (also called "home equity conversion loans") give older homeowners the ability to tap into home equity without selling their home. The lender pays you funds determined by the equity you've built-up in your home; you get a one-time amount, a monthly payment or a line of credit. The borrowed money doesn't have to be repaid until the homeowner sells the home, moves away, or passes away. At the time your house sells or you no longer use it as your primary residence, you (or your estate) have to pay back the lender for the cash you obtained from the reverse mortgage plus interest and other finance charges.
The requirements of a reverse mortgage loan usually include being 62 or older, using the home as your primary residence, and holding a low balance on your mortgage or owning your home outright.
Many homeowners who are on a fixed income and find themselves needing additional money find reverse mortgages helpful for their circumstance. Social Security and Medicare benefits can not be affected; and the money is not taxable. Reverse Mortgages can have adjustable or fixed interest rates. The home can never be in danger of being taken away by the lending institution or put up for sale against your will if you live longer than your loan term - even if the current property value goes under the balance of the loan. Call us at (718) 639-9500 if you'd like to explore the benefits of reverse mortgages.
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