If you are facing financial challenges in your latter years, it is important you apply for Reverse Mortgages New York. This is a special program meant for seniors who own their own homes and are at least sixty years old. It allows them to change the equity in their home into a line of credit, monthly payments or a lump sum payment. This can be a very useful retirement strategy if you want to earn some extra income.
Reverse mortgages are quite different from common mortgages. As the name suggests, they are called “reverse” because they reverse the direction of payments. That is, instead of putting the money in to build up equity in your house, you actually take money out to reduce the equity in the house.
Like most loans, you will pay a monthly service fee, recording fee, escrow fee, title fee, appraisal fee and an origination fee. The best with thing with a reverse mortgage is that all these are included in your loan balance if there is enough equity available. Another great thing about a reverse mortgage is that payment made on the loan is postponed until you no longer occupy the property as your principal place of residence. When you sell or move from your home, the loan balance is due and payable. In case of death, your heirs who acquire ownership the home will be expected to pay back the loan.
There are factors that do not affect the eligibility to qualify for a reverse mortgage. These include discharged bankruptcy, health, credit history and income of the homeowner. Once you have decided to apply for a reverse mortgage, you will need to visit a licensed reverse mortgage lender in your area. They will calculate the allowable equity in your home based on three major factors, which include:
- Your age
- The appraised value of your home
- The FHA maximum loan limit
Reverse Mortgages New York have helped thousands of homeowners improve their quality of life after retirement. It can help you live a comfortable life after you retire by providing you with money when you most need it.
