Reverse Mortgages:the Facts

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In a reverse mortgage (sometimes 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'd prefer to to receive your money: by a monthly payment amount, a line of credit, or a lump sum, you can take out a loan based on your home equity. The loan doesn't have to be paid back until the borrower sells the home, moves out, or dies. At the time your house has been sold or you no longer use it as your main residence, you (or your estate) are obligated to pay back the lender for the cash you got from your reverse mortgage as well as interest among other finance charges.

Who is Eligible?

The requirements of a reverse mortgage loan often are being sixty-two or older, maintaining your house as your main residence, and having a low remaining mortgage balance or having paid it off.

Homeowners who live on a limited income and find themselves needing additional funds find reverse mortgages helpful for their situation. Interest rates can be fixed or adjustable and the funds are nontaxable and do not affect Social Security or Medicare benefits. Your lender will not take the property away if you live past the loan term nor may you be forced to sell your residence to pay off the loan amount even when the loan balance grows to exceed property value. Call us at 718-766-9112 to discuss your reverse mortgage options.

At Manhattan Financials, we answer questions about reverse mortgages every day. Call us: 718-766-9112.