Is a Reverse Mortgage for You?

In a reverse mortgage (sometimes referred to as a a home equity conversion loan), homeowners of a certain age may use home equity for anything they need without selling their homes. Choosing between a monthly payment amount, a line of credit, or a one-time payment, you can take out a loan amount determined by your home equity. The loan doesn’t have to be repaid until the homeowner sells his residence, moves away, or dies. When you sell your home or is no longer used as your primary residence, you (or your estate) are obligated to repay the lending institution for the cash you obtained from your reverse mortgage plus interest among other fees.

Who is Able to Participate?

Generally, reverse mortgages are available for homeowners who are at least sixty-two years old, have a low or zero balance in a mortgage and use the property as your main living place. Many homeowners who live on a limited income and find themselves needing additional funds find reverse mortgages ideal for their circumstance. Interest rates may be fixed or adjustable and the funds are nontaxable and don’t adversely affect Social Security or Medicare benefits. Your lending institution will not take the property away if you outlive your loan nor will you be required to sell your residence to pay off the loan even when the loan balance grows to exceed property value. Contact us at 7186399500 to look into your reverse mortgage options.

At Channel Mortgage LLC, we answer questions about reverse mortgages every day. Call us: (718) 639-9500.