Reverse mortgages (also referred to as "home equity conversion loans") give older homeowners the ability to tap into equity without the necessity of selling their home. The lender pays out money determined by your home equity amount; you receive a lump sum, a monthly payment or a line of credit. Repayment is not necessary until the time the borrower puts his home up for sale, moves (such as to a care facility) or dies. After you sell your home or you no longer use it as your primary residence, you (or your estate) have to pay back the lender for the funds you obtained from your reverse mortgage as well as interest and other fees.
Most reverse mortgages are offered to borrowers at least 62 years of age, have a low or zero balance owed against your home and use the house as your principal living place.
Many homeowners who live on a limited income and need additional funds find reverse mortgages ideal for their situation. Interest rates may be fixed or adjustable and the funds are nontaxable and don't affect Medicare or Social Security benefits. Your house can never be at risk of being taken away from you by the lender or put up for sale against your will if you live past your loan term - even if the current property value goes below the balance of the loan. Contact us at (718) 639-9500 if you want to explore the advantages of reverse mortgages.
Do you have a question regarding a mortgage program?