What is a Reverse Mortgage?
Homeowners that are 62 years or older have the option to apply for a type of loan called a reverse mortgage. A reverse mortgage loan converts real estate equity into spendable cash for qualified borrowers.
A reverse mortgage may be a great choice for retirees or those planning their retirement as the loan offers them the opportunity to stay in the comfort of their home (unless they default on the loan, in which case they may face foreclosure) while also reducing their monthly mortgage payments and increasing their cash income. It is important to note that, with this type of loan, borrowers are still responsible for paying their property taxes and insurance.
What are the Potential Advantages of a Reverse Mortgage?
If you qualify for a reverse mortgage, these are some of the advantages you may experience as a result:
Secure Your Retirement
If you’d like to have more spendable cash to ensure you can enjoy and maintain a comfortable retirement, a reverse mortgage may be able to help. With a reverse mortgage, you can turn a somewhat otherwise illiquid asset, your home's equity, into cash you can use to pay bills, travel, and make any other purchases you wish during your retirement.
Pay off Your Current Home Loan(s) and Replace With a Reverse Mortgage
Your home does not need to be entirely paid off to apply for and receive a reverse mortgage. You can also use the money you receive from your reverse mortgage to pay off your existing home loans, freeing up cash for other important expenses.
Stay in Your Home
Instead of selling your house, a reverse mortgage allows you to remain in your home while using the equity for your expenditures. Don’t worry about downsizing or moving out during your retirement to save money; stay in the comfort of your existing home. You may be required to sell or the home could be foreclosed upon if you default on the loan terms as with other mortgage loans.
Speak with a local mortgage loan officer to learn more about the potential advantages of reverse mortgages.
To learn more about reverse mortgages, contact the mortgage loan officers at Hartford Funding LTD.
If you’re looking to get a reverse mortgage on Long Island, consider turning to Hartford Funding LTD. We will patiently work with you to offer all the information needed to determine if a reverse mortgage is right for you and then guide you carefully through every step of the application process.
To learn more about our services and schedule an appointment with our mortgage loan officers, call us at (516) 595-7646 or visit our website.
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