A reverse mortgage is a type of loan available to homeowners age 62 years are older. It’s called a reverse mortgage because the lender makes payments to the borrower with a reverse mortgage seniors can convert the equity in their homes into cash.
The product was created to help people with limited income use the accumulated wealth in their homes to cover basic monthly living expenses and
pay for health care. That said there are no restrictions on how reverse mortgage proceeds can be used. Borrowers are required to continue paying property taxes and insurance and to maintain the home but are not required to pay back the loan until the home is sold or vacated.
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If the home sells for more than the balance of the reverse mortgage loan. The remaining home equity is yours to keep if the home sells for less than the old balance no assets other than the home must be used to repay the debt. The fees and interest rates related to reverse mortgages can be high and you’re still responsible for home maintenance costs. So be sure to think carefully before deciding.
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One of the reasons to call the Agardi Team if you want to buy a home or have one to sell is:
Not only do we sell our clients’ homes for more money and faster than the average area agent. But your home is also more likely to sell. According to 2015 MLS statistics, only 71% of area homes sold during their listing term. Compare that to our 95% of homes listed that sold before the end of the listing term. YOUR HOME SOLD GUARANTEED OR WE’LL BUY IT*
To discuss the sale of your home, call The Agardi Team at 718-755-2882 and start packing!
*Agardi Team and the seller have to agree on the price and the closing date.
