If you watch television, read magazines or surf the net, you’ve probably seen ads for reverse mortgages. Those ads don’t provide many details, so here are the basics you need to know about reverse mortgages.
Are you eligible for a reverse mortgage on your Brooklyn NY real estate?
To be eligible for a reverse mortgage, you must:
- Be at least 62 years old
- Own your home
- Live in the home and claim it as your primary residence
When does the reverse mortgage loan become due?
As the homeowner, you do not have to make any monthly payments on your reverse mortgage. The loan becomes due when you:
- Permanently move out of your home
- Sell the home or fail to fulfill other conditions like the continued payment of property taxes, homeowner’s insurance and repair and maintenance.
- Pass away
Should you get a reverse mortgage on your Brooklyn NY real estate?
The Consumers Union, the nonprofit publisher of Consumer Reports, suggests you consider all alternatives to a reverse mortgage before taking the plunge. Alternatives you may want to consider include less expensive programs offering financial assistance, other lower-cost loans or selling your home.
You may want to get a reverse mortgage if you:
- Need additional income and there is no less expensive way to get it. Use an online reverse mortgage calculator to estimate the amount of money you could get from a reverse mortgage.
- Want to stay in your home and retain ownership
- Do not plan to leave your home to your children or others who will inherit from you.
You may NOT want to get a reverse mortgage if you:
- Want to leave your home, free and clear, to your children or heirs
- Have a less costly means to reach your financial goal
- Become ineligible to receive public benefits such as Medicaid or SSI (Social Security Income) by taking out a reverse mortgage.
- Will have trouble paying your property taxes and homeowner’s insurance. A 2010 report from the Department of Housing and Urban Development (HUD) estimated that more than 20,000 reverse mortgages were in default for nonpayment of taxes and insurance. You do not want to get a reverse mortgage only to lose your home to foreclosure and eviction because you’re unable to pay your taxes and insurance.
As always, when you consider taking out a loan of any type, do your homework to make sure this is the right move for you, be sure to read all of the fine print and understand exactly what it is you’re signing.
If you’d like some help determining if selling your home, getting a reverse mortgage or some other lower-cost loan is best for you, give me a call Charles D’Alessandro of Fillmore Real Estate call today at 9718) 253-9600 ext 206 or email me at charles@brooklynrealestatesales.com.
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