When it comes to a reverse mortgage, the full process isn’t always common knowledge. A reverse mortgage is a loan type available to homeowners who are 62 years or older, but how exactly does it work? What are the necessary steps, and what are the benefits of this financial tool?

Luckily, our experts at Go Reverse Mortgage have a full breakdown of the reverse mortgage process and how it’s one of the most practical choices for seniors. 

What is a Reverse Mortgage?

A reverse mortgage is a financial tool that allows homeowners to convert their home equity into cash. This process, called a “HECM” or Home Equity Conversion Mortgage, can provide you with monthly payments or lump sum payouts in the form of an annuity. With a HECM, your house becomes a security for which you borrow money against the value of your property and make interest-only payments until the loan is paid off (or repaid).

How Does This Process Work?

Reverse mortgages work by allowing you to borrow against your home’s equity until it is paid off or sold. Essentially, the product helps people tap into the equity and use the money to cover other needs (e.g., fund home improvements). This loan is called a reverse mortgage because it is the opposite of a traditional mortgage.

As long as you live in the home, you are not required to make any monthly payments towards the loan credit, but you must remain current on your property taxes, homeowners association dues, and insurance.

Reverse Mortgage Requirements

Here are some requirement factors to consider before you apply for a reverse mortgage in New York: 

  • You must be 62 or older
  • The home must be your primary residence (not vacation homes or rental properties)
  • You must remain current on your property taxes, homeowners association dues, and insurance
  • You must own your house outright or have at least 50% equity in your home

How This Process Will Help You

Curious to know what seniors are saying who have taken out reverse mortgages? 

  • 95% reported that a reverse mortgage partially met their financial needs.
  • 94% had greater peace of mind.
  • 93% said that their reverse mortgage positively affected their lives.
  • 89% described having a more comfortable lifestyle.
  • 100% satisfied with our customer service!

Sign Up For a Free No-Obligation Reverse Mortgage Consultation

At Go Reverse Mortgage, we pride ourselves on excellent customer service and building long-lasting relationships with our clients. Our team wants to ensure you have a gratifying and seamless experience. We vow to find the best rates for your reverse mortgage, no matter your needs! Get in touch with us today.