What exactly is a Reverse Mortgage and is it right for me?
I have heard of Reverse Mortgages,
but what exactly are they?
With a Reverse Mortgage, you do not
have to repay the loan for as long as you live in the home; you
will never owe more than your home is worth; and most importantly,
payments from a Reverse Mortgage are guaranteed.
How can I receive my money?
There are several options available
for receiving your equity:
- Lump Sum
- Monthly payments for as long as you
live in your home
- Monthly payments for a fixed number
- A line of credit you can draw upon
as you need
- Or a combination of these options that
best meet your needs
How do I qualify?
To qualify, you and any co-borrower
must be at least 62 years-of-age and
own a home. This home must be your primary residence.
The best part
of the program is there are no income requirements
and only minimal credit requirements to satisfy.
What types of Reverse Mortgage programs
There are several Reverse Mortgage
programs available, including
the FHA-Insured Home Equity Conversion Mortgage (HECM), the Fannie
Keeper and Cash Account.
How much money can I qualify for?
How much money you can receive is
based upon the age and number of borrowers, the value of the house,
current interest rates, you
To receive your free, no obligation Reverse Mortgage
contact your local Mid-Island Reverse Mortgage advisor
Are there any costs associated with
a Reverse Mortgage?
Closing costs and fees will be incurred
when you obtain a Reverse
Closing costs include the appraisal, title insurance,
origination fee and
recording fees. Your Mid-Island
Reverse Mortgage advisor will be happy to provide you with
of Closing Costs when you meet.
When will my Reverse Mortgage become
due and payable?
Your Reverse Mortgage must be repaid
when you either sell your
home or permanently
leave the residence. In the event of death, your
heirs will have the choice of keeping the house and
repaying the loan with liquid assets or a conventional
mortgage, or selling the house and using the proceeds
to repay the loan.
How will this affect my taxes and Social
Payments received from a Reverse Mortgage
are considered to be a loan, not income. Therefore, the funds received
subject to income tax and do not affect Social Security Benefits.
Borrowers receiving Medicaid or SSI may not be affected if
the funds from the Reverse Mortgage are spent in the month they
received. As always, we recommend you consult your own tax
advisor for further details.
To ensure that the Reverse Mortgage is appropriate for your situation, during
the application process Reverse Mortgage borrowers are required
to receive FREE counseling from a third-party counseling agency.
Your local Reverse Mortgage advisor has a list of counselors
and can refer you to their nearest location.
How do I find out more?
Just contact your Mid-Island
representative at 516-348-0600 or click the button below.