Northeast Funding Services

Where What's Best For You Matters Most

  • About
    • Our Company
    • Testimonials
    • Services
    • Locations
      • New York Mortgage Broker
      • South Carolina Mortgage Broker
  • Purchase
    • Conventional Mortgage
    • VA Home Loans
      • VA Loans: 10 Things To Know About The 100% Mortgage Program
      • 5 things to know about getting a VA loan
      • VA Home Loans: A Benefit You’ve Earned
    • FHA Loan
    • USDA Loan
    • Reverse Mortgage
      • Reverse Mortgage Counseling
      • Types of Reverse Mortgages
      • FAQ’s about Reverse Mortgages
      • Are Reverse Mortgages Good?
    • Pre-Qualify
  • Refinance
    • Conventional Mortgage
    • VA Home Loans
      • VA Loans: 10 Things To Know About The 100% Mortgage Program
      • 5 things to know about getting a VA loan
      • VA Home Loans: A Benefit You’ve Earned
    • FHA Loan
    • USDA Loan
    • Reverse Mortgage
      • Reverse Mortgage Counseling
      • Types of Reverse Mortgages
      • FAQ’s about Reverse Mortgages
      • Are Reverse Mortgages Good?
    • Cash Out Refinance
    • Debt Consolidation
    • No Cash-out Rate & Term
  • FASTRAC
    • When You Need it Done Now
  • Learning Center
    • Rates
    • Home Loan Videos
    • See the Steps
    • Mortgage Products
    • Mortgage Calculator
    • Blog
    • Mortgage Glossary
  • Contact
    • Contact Us
    • New York Mortgage Broker
    • South Carolina Mortgage Broker
  • Apply Now

Are Reverse Mortgages Good?

A reverse mortgage is a special type of home loan that allows borrowers who are at least 62 years old (and meet other eligibility requirements) to convert a portion of the equity in their homes into cash.

Loan proceeds can be taken as a lump-sum or monthly payment or as a line of credit. Interest is added to the loan each month, and the balance grows over time. A reverse mortgage must be repaid when the last borrower, co-borrower or “eligible spouse” sells the home, moves out or dies.

Most reverse mortgages are federally insured through the Federal Housing Authority’s Home Equity Conversion Mortgage program (HECM). The FHA — part of the U.S. Department of Housing and Urban Development (HUD) — reimburses lenders for losses tied to homes that sell for less than what is owed on the loans.

This program was created to give seniors access to an incremental, sustainable financial resource to allow them to age in place, not as an ATM machine.

Under HUD’s new rules, borrowers can draw up to 60 percent of their initial principal limit in the first year of a loan, with some exceptions. In the past, some borrowers took out as much as they could up front and later found themselves with no capacity to cover critical expenses, including property taxes and homeowner’s insurance.

HUD also requires prospective borrowers as well as any non-borrowing spouses to take part in a counseling session with a HUD-approved counselor.

New research has shown that establishing a reverse-mortgage line of credit early in retirement may mean the difference between success and failure when it comes to sticking to a financial plan.

A reverse-mortgage can give a retiree access to cash that can be used to ride out market corrections. Retirees can pay back what they draw from a line of credit when markets recover.

Written by · Categorized: Reverse Mortgages

Purchase Pre-Qualify

Keep the dream alive by getting pre-qualified before you start looking for a home.

go

VA Home Loans

100% Financing may be an option if you're a United States Veteran, Service Member, or not remarried spouse.

go

Refinance / Debt Consolidation

Using the equity in your home to payoff other bills or needs is a great option.

go

Reverse Mortgages

Stop fighting to stay afloat. Use the reverse mortgage to give you quality of life and eliminate your mortgage payment and other bills.

go

Recent Posts

VA home loans for United States veterans offered by Northeast Funding Services

VA Loans: 10 Things To Know About The 100% Mortgage Program

VA Home Loans: A Benefit You’ve Earned

Reverse mortgage loans are provided by Northeast Funding Services

Reverse Mortgage Counseling

Reverse mortgage loans are provided by Northeast Funding Services

Are there different types of reverse mortgages?

About Us

  • Our Company
  • Locations
  • Services
  • About Us

Learn

  • See the Steps
  • Mortgage Products
  • Mortgage Calculator
  • Blog

Purchase / Pre-Qualify

  • New Home
  • VA Home Loans

Refinance

  • Cash Out Refinance
  • Debt Consolidation
  • VA Home Loans
  • No Cash-out Rate & Term
  • Reverse Mortgage
  • Get Rates

Contact Us

New York

125 Wolf Road
Suite 217
Albany, NY 12205

518-782-1855

Email Us

South Carolina

638 E. Point Dr
Gilbert, SC 29054

803-239-4848

Registered Mortgage Broker New York Department of Financial Services, and South Carolina Department of Consumer Affairs NMLS ID#46813. Loans provided through third party providers.

Terms & Conditions

  • Privacy Policy

© 2023 · Website Design by PCS Web Design