With a reverse mortgage loan (sometimes referred to as a a home equity conversion loan), borrowers of a certain age may use home equity for living expenses without having to sell their homes. Deciding how you prefer to be paid: by 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 required until when the homeowner sells the home, moves (such as into a care facility) or passes away. After your house has been sold or you no longer use it as your main residence, you (or your estate) have to repay the lender for the funds you received from your reverse mortgage plus interest and other fees.
The conditions of a reverse mortgage generally include being sixty-two or older, maintaining your house as your main residence, and holding a low balance on your mortgage or owning your home outright.
Homeowners who are on a fixed income and find themselves needing additional funds find reverse mortgages helpful for their situation. Rates of interest may be fixed or adjustable while the money is nontaxable and doesn't interfere with Social Security or Medicare benefits. The house can never be in danger of being taken away by the lending institution or put up for sale against your will if you live past your loan term - even if the current property value dips below the balance of the loan. Contact us at (914) 287-2405 to discuss your reverse mortgage options.