Long Island Reverse Mortgages
Finding a reverse mortgage on Long Island can be a daunting task. Long Island Reverse Mortgage brokers are available, but finding the right broker or firm can be difficult. Understanding the Long Island Reverse mortgage market can help you make an education decision to move forward. A Long Island Reverse Mortgage (or lifetime mortgage as known in other states) is a loan available to seniors, and is used to release the home equity in the property as one lump sum or multiple payments.
If a property on Long Island increased in value after a reverse mortgage is taken out, it is possible to acquire a second (or third) reverse mortgage over the increased equity in the home. But in certain countries (including the United States), a reverse mortgage must be the only mortgage on the property. Long Island Reverse Mortgages are very similar to other reverse mortgage programs offered in different states.
To qualify for a reverse mortgage in the United States (including Long Island) the borrower must be at least 62 years of age. The cost of getting a Long Island Reverse Mortgage from a private sector lender may exceed the costs of other types of mortgage or equity conversion loans. Exact costs depend on the particular reverse mortgage program the borrower acquires.
In all of these cases, the costs of a Long Island Reverse Mortgage can typically be financed with the proceeds of the loan itself, with the costs and fees being rolled directly into the principal balance of the loan, rather than paid by the borrower in cash. Because there are no payments made during the course of the loan, the compound interest accrued on the principal plus fees are added to the principal of the loan.
Interest rates on Long Island Reverse Mortgages are determined on a program-by-program basis, because the loans are secured by the home itself, and backed by HUD, the interest rate should always be below any other available interest rate in the standard mortgage marketplace for an FHA reverse mortgage.
How should I find a reverse mortgage on Long Island?
Some state and local governments offer low-cost reverse mortgages to seniors. You should speak with your Real Estate Attorney or CPA to see if they know any programs that apply to Long Island reverse mortgages. These “public sector” loans generally must be used for specific purposes, such as paying for home repairs or property taxes, but most of them often have more favorable interest rates and fewer or no fees associated with them. These programs are typically very restrictive in terms of qualification and location, and many regions, states, and areas do not have such programs at all.
Click here to learn more about Long Island Reverse Mortgages.
About the Author
Greg Iorio writes articles regarding residential mortgages. He has over 20 years experience as a Senior Lending Consultant for a top-tier US Mortgage Bank.
Dave Gagnon – Reverse Mortgages available in CT
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