Getting a Reverse Mortgage in New York (2019) Hauseit® New York City

Getting a Reverse Mortgage in New York (2019) Hauseit® New York City. What is a reverse mortgage?

Getting a Reverse Mortgage in New York (2019) Hauseit® New York City video duration 3 Minute(s) 46 Second(s), published by Hauseit on 18 10 2018 - 18:15:26.

Getting a Reverse Mortgage in New York: https://www.hauseit.com/getting-reverse-mortgage-new-york/ Save on Your Mortgage Recording Tax: Heartland took to the streets to find out what your thoughts are on reverse mortgages
You can find out more about Reverse Mortgages and how it could help you .

Gail Allen of No Fico Score Group LLC joins Bob Lee for a discussion on reverse mortgages .

Getting a Reverse Mortgage in New York: https://www.hauseit.com/getting-reverse-mortgage-new-york/
Save on Your Mortgage Recording Tax: https://www.hauseit.com/hauseit-buyer-closing-credit-nyc/

There are many reasons for getting a reverse mortgage. You may want a more comfortable retirement or money to buy a second home or to renovate your home. New York is an expensive place to live, especially on the fixed income of a senior.

What is a Reverse Mortgage?

A reverse mortgage is a home equity loan that allows you to convert some of your home’s equity into cash while you maintain ownership. A reverse mortgage can be great for many seniors who have money in their homes but not enough money in the bank.

A reverse mortgage is exactly what it sounds like. Whereas in a traditional mortgage the borrower makes payments to the lender, in a reverse mortgage the lender makes payments to the borrower. A reverse mortgage will need to be repaid when the borrower dies, sells the home or permanently moves.

You’ll need to pay off any existing mortgage debt to get a reverse mortgage, but it’s possible to do that with the proceeds from the reverse mortgage itself.

Age limits also apply, for example some reverse mortgages only need you to be at least 60 years old, while others require you to be at least 70 years old with a low income. You’ll need to be at least 62 years old to qualify for a FHA reverse mortgage.

Why Should I get a Reverse Mortgage?

A reverse mortgage allows you to receive the funds as a lump-sum payment, monthly payments, a line of credit, or as a combination of all these options. You can stay in your home without making monthly mortgage payments and you maintain your home’s title.

In a reverse mortgage your heirs won’t be personally liable if the loan balance exceeds the value of the home. Also, your heirs will inherit any remaining equity after paying off the reverse mortgage.

Downsides to a Reverse Mortgage

A reverse mortgage loan balance will increase over time and the value of your estate may decrease over time since interest accrues on the loan balance.

Another important factor is Medicaid eligibility. While programs like Social Security and Medicare are typically not affected by a reverse mortgage loan, needs-based government programs like Medicaid will be affected.

Reverse mortgages are designed for borrowers with no other source of income because there’s no monthly mortgage payment. A reverse mortgage takes equity from the home, and you still have to pay property taxes and maintain property insurance. The loan balance plus interest is due after the property is no longer your primary residence.

Three additional risks to a reverse mortgage include:

1) Getting approved for more money than you need.
2) Not realizing you need to continue paying property taxes and insurance premiums.
3) Taking your spouse off the title and causing him or her to be homeless when the loan is due.