Is A Reverse Mortgage A Good Idea To Help Me Stay In My Brooklyn Home
Brooklyn Senior Home Owners wondering if a reverse mortgage is good option to help you stay in your home.
What is a Reverse Mortgage?
Also known as a Home Equity Conversion Loan – A Reverse Mortgage is a type of loan where a home owner aged 62 or older gives up the equity in their home to borrow against the home in exchange for payments from a financial lender to help supplement their income.
As oppose to “traditional mortgages” that decreases over time – reverse mortgages increase as interest and fees on the loan accrues
With this additional retirement income a Reverse Mortgage can offer a home owner financial security.
Two Issues That Give Home Owners Considering a Reverse Mortgage Angst
Seniors facing major health issues or those hoping to “leave something for their heirs”
1. If you become ill and have to stay in a nursing home for more than a year- the terms of the reverse mortgage considers your stay as a “move” which maybe a violation and the lender may foreclose on the home and sell it to cover the loan.
* Homeowners have to certify that they are living in the home.
2. When you die with an open reverse mortgage, the loan becomes due. If the heirs can not payoff the loan, the lender will foreclose. If the home sells for more than balance at the time of your death, the difference goes to your heirs.
Click here more for information regarding “ Understanding the Pros and Cons of taking out a reverse mortgage
Brooklyn senior home owner – after speaking with a reverse mortgage specialist and you have determined that a reverse mortgage is not an option that you would like to pursue and you are ready to downsize by selling your home and move to a home that meets your current needs
Call: Michele Cadogan
Fillmore Real Estate
Licensed Real Estate Associate Broker
Should you decide to stay in your home- here are a few helpful tips to help you age in place.