In a reverse mortgage (also referred to as a a home equity conversion loan), homeowners of a certain age may use home equity for living expenses without selling their homes. Deciding how you prefer to to receive your money: by a monthly payment, a line of credit, or a one-time payment, you may receive a loan amount determined by your equity. Paying back your loan isn't required until the homeowner puts his home up for sale, moves (such as to a retirement community) or dies. When you sell your home or you no longer use it as your main residence, you (or your estate) must pay back the lender for the money you obtained from your reverse mortgage plus interest and other fees.
The requirements of a reverse mortgage loan often are being sixty-two or older, using the home as your primary living place, and having a small remaining mortgage balance or having paid it off.
Homeowners who are on a fixed income and find themselves needing additional funds find reverse mortgages advantageous for their circumstance. Social Security and Medicare benefits can not be affected; and the money is nontaxable. Reverse Mortgages can have adjustable or fixed rates. Your lending institution isn't able to take the property away if you live past the loan term nor can you be obligated to sell your residence to repay your loan amount even if the loan balance grows to exceed current property value. Contact us at (718) 639-9500 to discuss your reverse mortgage options.
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