If you’re over 62 and want to use your home’s equity to supplement your income, a reverse mortgage could be a great option. The bank will give you payments every month in exchange for a part of your home’s value with no payments due on your part until your house is sold or otherwise vacated.
The most common reverse mortgage is the Home Equity Conversion Mortgage (HECM), which is insured by the federal government. Following recent legislation, there are new increased borrowing limits are available along with the ability to purchase a new home with this program. Other options are available as well, so if you’re not sure which is best, contact us today.
Borrowers choose reverse mortgages for a number of reasons, including:
The disbursement options on a reverse mortgage loan are flexible. You can access money in a lump sum, establishing a line of credit to use as needed, or a combination of the two.
When and if the home is left permanently, the balance on your reverse mortgage becomes due. Selling the home itself can pay for this—any remaining equity belongs to you or your heirs.
If you’re interested in learning more about your reverse mortgage options, contact us today and one of our team members will happily answer any of your questions.
Home equity and mortgage loans can both be used toward home purchases repairs, improvements and other upgrades, but each financing type differs in requirements, benefits, tax deductions, and repayment terms.Read More
When considering a home purchase on Long Island, it’s best to have your information and requirements updated and ready, such as financial statements and tax returns, mortgage pre-approval and commitment letters, neighborhood and realtor preferences, and more.Read More
First-time home buyers may qualify for various conventional and government-backed loans, such as those offered through Fannie Mae, Freddie Mac, the Federal Housing Administration, U.S. Department of Agriculture, and Veterans Affairs.Read More
Renovation costs can be added to specific rehab loans offered through the Federal Housing Administration (FHA), Fannie Mae, and Freddie Mac for borrowers meeting specified criteria, such as down payment amounts, project scopes, credit scores, and other requirements.Read More