Reverse Mortgage Loan - Reverse Mortgage Lender

If the answer is yes, then our reverse mortgage loan programs may be for you! We are a reverse mortgage lender with a variety of reverse mortgage loan products in New York, New Jersey and Florida.

What is a reverse mortgage?

A reverse mortgage is a special type of home loan that lets a homeowner convert the equity in his or her home into cash. The equity built up over years of home mortgage payments can be paid to the homeowner in a number of ways: in a lump sum, in a stream of payments, or as a supplement to Social Security or other retirement funds. But unlike a traditional home equity loan or second mortgage, with a reverse mortgage repayment is not required until the borrowers no longer use the home as their principal residence.

Use of Funds

The funds from a reverse mortgage can be used for anything. Common uses include supplementing retirement income to cover daily living expenses; repairing or modifying your home (i.e., widening halls or installing a ramp); covering health care expenses; paying off existing debts; taking a vacation; paying property taxes; and preventing foreclosure. There are no income or medical requirements to qualify. You may be eligible for a reverse mortgage even if you still owe money on an existing mortgage.

Payment Options

You can choose to receive the money from a reverse mortgage all at once as a lump sum, fixed monthly payments (for up to life), as a line of credit, or a combination of these. The most popular option – chosen by more than 60 percent of borrowers – is the line of credit, which allows you to draw on the loan proceeds at any time.

What are some of the benefits of a reverse mortgage?

• Strengthen your personal and financial independence.
• Help pay for health care or other needs.
• You can never lose your home in foreclosure as long as you maintain the property tax and insurance payments.
• The loan is only paid off when the house is sold by you or your heirs, or all borrowers move out of the house.
• Keep your Medicare or Social Security benefits.
• Use it as a credit line and draw upon it as needed.
• Get all your cash right away.
• Get the best of both—get cash now and have a balance in reserve to use as a credit line.
• No Income Requirements: The homeowner does not need to be working and is not qualified based on income.

As the homeowner receives monthly cash income, the loan balance increases. In the following twelve-month example, the homeowner begins with a debt-free home. As money is received by the homeowner, the mortgage grows. By the end of month twelve, the homeowner owes the bank $6,000 plus $232.44 interest. All Reverse Mortgage loans have a variable rate.

Assumptions*

Regular monthly advances	$500
Annual interest rate	7.0 %
Monthly interest rate	.583% (.07 / 12)

Month	Beginning Balance	Interest	Ending Balance	Cash Disbursement
0	0	0.00	0.00	$500.00
1	$500.00	$2.92	$502.92	$500.00
2	$1,002.92	$5.85	$1,008.77	$500.00
3	$1,508.77	$8.80	$1,517.57	$500.00
4	$2,017.57	$11.77	$2,029.34	$500.00
5	$2,529.34	$14.75	$2,544.09	$500.00
6	$3,044.09	$17.76	$3,061.85	$500.00
7	$3,561.85	$20.78	$3,582.63	$500.00
8	$4,082.63	$23.82	$4,106.44	$500.00
9	$4,606.44	$26.87	$4,633.31	$500.00
10	$5,133.31	$29.94	$5,163.26	$500.00
11	$5,663.26	$33.04	$5,696.29	$500.00
12	$6,196.29	$36.15	$6,232.44	$500.00

*Many criteria are considered when determining the reverse mortgage loan amount, interest rate, etc.