Did you know that cash could be hiding in your Brooklyn condo? If you are sixty-two or older, you may be able to qualify for a reverse mortgage, and never have to make a mortgage payment as long as you live in the home. Let me tell you a little more about a reverse mortgage:
A reverse mortgage uses the equity in your Brooklyn condo to make payments to you. You aren’t required to make any payments for as long as you live in your home. The loan doesn’t become due until you have not lived in the home for at least twelve months. Your home can pass to your descendents if they refinance the loan themselves. The money can be used for any purpose you want.
Funds are received as a lump sum, a line of credit, or a monthly payment. You’ll have access to more money with the line of credit, but the interest rate is variable. If you decide on a lump sum or a monthly payment, you will have a higher interest rate. The line of credit can be a credit card or like a checking account. You can buy groceries, gas and pay your bills out of this account.
The reverse mortgage process is similar to the conventional mortgage process. The property will need an inspection and appraisal. There are origination fees and closing costs associated with this type of loan.
The first requirement is age; only those sixty-two or older are able to qualify. There are no income or credit requirements to be approved for a reverse mortgage. Some lenders even let you roll the down payment and closing costs into the loan, so that you don’t have pay any money up front.
The loan is based on the age of the youngest borrower. The older you are, the more money you will qualify for. The good news is that the money will not affect your Social Security benefits or Medicare.
There are advantages and disadvantages to a reverse mortgage, so be sure to do your homework before making this important decision.
If you have questions about reverse mortgages, or would like to discuss buying or selling a Brooklyn condo, give me a call today at (1718)253-9600 ext 206 or email me at [email protected]
tel 718 253-9600
fax 718 253-9573