Over the years, we've helped thousands of people understand the power of reverse mortgages. Here are some of the questions they ask the most. If there is anything else we can help you with, please don’t hesitate to call us at the toll-free numbers below or click on contact us. We'd be happy to explain anything you need.
New York City area, Long Island & Connecticut: (800) 214-3836
Balance of New York State: (866) 461-6290
Q. How do I know if I'm eligible for a reverse mortgage?
A. You're eligible if you're age 62 or over and you own your own home.
Q. What if I already have a mortgage or home equity loan?
A. That’s fine, reverse mortgages are often used to pay off existing debts and eliminate payments.
Q. Will I have to give up my home?
A. Never. The title to the home will always remain in your name and you
may stay in your home for as long as you like.
Q. How much can I receive?
A. It depends on current interest rates, your age, and the value of your
home. The older you are and the higher the value of your home, the
more money available to you. As for interest rates, when they're high,
the amount declines. When interest rates are low, as they are now,
the amount is greater.
Q. How do I receive my money?
A. It's your choice: lump sum, ready line of credit, or scheduled monthly
income supplement. You can also combine options, such as a line of
credit together with a monthly income supplement. Depending on your
preference, your money will be directly deposited to your bank account
or paid by check.
Q. Are the proceeds taxable?
A. No. Your home equity is a form of savings. It's not taxable upon withdrawal
even if you choose to receive your money as monthly income.
Q. Will this affect my Social Security or Medicare benefits?
A. No. A reverse mortgage does not affect Social Security or Medicare
benefits.
Q. Are there closing costs?
A. Yes. A reverse mortgage involves closing costs that are similar to
a traditional mortgage. However, these costs can be paid from proceeds
so there are no "out of pocket" costs.
Q. When does it get repaid?
A. Repayment occurs when all homeowners permanently move from the home.
At that time, the amount due can be paid from the sale proceeds or
other means. The house does not have to be sold. You, your children,
or heirs always have the option to pay off the loan and keep the house.
As a protection to you, the FHA guarantees that the repayment amount
can't exceed the value of your home at the time it's repaid.
Q. Are there any restrictions on how I use the money?
A. No. It is your money to be used in any way you wish.
Q. What else should I know?
- The interest rate on a reverse mortgage is generally one to two percent lower than a traditional home equity line of credit and dramatically lower than finance company rates.
- A reverse mortgage has no specific maturity date. It remains available for as long as you live in your home.
- Life Estates are eligible. So are condominiums, townhomes and co-op units located in NYC.
- A reverse mortgage is secured solely by the value of your home. You or your heirs will never have any personal liability for repaying the loan.
- In New York State, reverse mortgage income is exempt from consideration as resources for public assistance programs, such as energy assistance, SSI, and Medicaid.
- The available amount under the line of credit option automatically increases each year that you live in your home.
- People who plan to stay in their homes for several more years benefit most from the program.
- No fees are paid until the loan closes. We advance any costs. Therefore, there are no "out of pocket" expenses whatsoever.
Q. What are the next steps?
A. If this sounds like an attractive option to you:
- Contact us. We'll arrange a meeting to review the program in detail. This will be at a time and place convenient for you, such as your home or our office.
- If the program meets your objectives, we'll arrange for a property appraisal and other customary documentation.
- Close and disburse.
Q. What can I do with the proceeds?
A. You can use the proceeds as you please:
- Establish a cash reserve
- Supplement monthly income
- Eliminate existing mortgages
- Repair or improve your home
- Travel
- Pay off credit cards
- Manage health care costs
- Replace your car
- Enhance your lifestyle
- Pay long-term care insurance premiums
- Give as a family gift
- Use it as extra spending money
- Any other reason you choose