With a reverse mortgage loan, borrowers of age 62 or older may use home equity for anything they need without selling their homes. The lending institution pays the borrower funds based on your home equity amount; you get a lump sum, a payment every month or a line of credit. Paying back the loan isn't necessary until the time the borrower puts his home up for sale, moves (such as into a care facility) or passes away. After the borrower sells his property or it is no longer used as the primary residence, the borrower(or their estate) are obligated to repay the lender for the cash received from the reverse mortgage plus interest and other fees.
Many homeowners who live on a fixed income and find themselves needing additional funds find reverse mortgages advantageous to their situation. Rates of interest can be fixed or adjustable while the money is nontaxable and doesn't adversely affect Social Security or Medicare benefits. The house is never at risk of being taken away by the lender, or sold without consent if the borrower outlives the loan term - even if the current property value goes below the balance of the loan. Call us at 845-352-0722 to look into your reverse mortgage options. *Please note that you will need to continue paying your real estate taxes, homeowners insurance, and any condominium or homeowners association fees.
Call us at 845-352-0722 with all your questions about a reverse mortgage.