Annette Fisher
Direct: 718.968.5242
annettefisher@brooklynishome.com
Reverse Mortgages
You may have paid into your house for years,
now you can have your house pay you.
Q & A: How to use your home to fund your retirement
There are several reverse mortgage products available.
What is a reverse mortgage?
- A reverse mortgage was designed to enable individuals 62 and over, to use their home’s equity as funds that are tax-free*. With a reverse mortgage you receive payments, instead of making them.
Are you eligible?
- You must be a homeowner 62 years of age or older, and occupy the property as your primary residence .
- The home does not need to be owned free and clear. You can have a small balance that can be paid from the proceeds of the reverse mortgage.
- No income check, you do not need to be employed, and there are no credit score requirements.
Benefits of a reverse mortgage.
- You can use your cash advances for
anything you want.
- Loan proceeds are not declared as income,
and do not affect Social Security or Medicare
benefits.
- In some situations a reverse mortgage can have
an affect on other programs. Please check
with the program offices to see if it affects
your particular program.
What is the interest rate?
- There are now several Reverse Mortgage programs, with both fixed, or adjustable rates. Government conforming products, and jumbo.
Ways to receive tax-free* cash
- You can take cash upon funding. You can receive tenure payments or you can receive monthly payments and have cash available for a line of credit.
What are the fees for a reverse mortgage?
- Most of the closing costs can be financed into the loan. The only out of pocket expense is usually for the appraisal.
Do I need home owners insurance?
- You must maintain insurance coverage on the property.
Do I have to pay off my credit cards.
- This loan requires lendors to pay off any liens against the property, as well as any open judgements.
- If you wish to pay your credit cards off you may want to take a cash advance.
How is the reverse mortgage repaid?
- No, repayment is required as long as one of the borrowers continues to live in the house, as their primary residence. You must also pay property taxes, and keep home owners insurance current. You must also maintain the property to FHA or Lendor standards.
Ask your Reverse Mortgage Specialist to discuss any other circumstances where the loan may become due.
Do I need counseling?
- You must obtain an eligibility certificate by
receiving counseling from a HUD approved agency.
Your home is likely your largest investment.
You owe it to yourself to get the facts
about this reverse mortgage program.
