Reverse Mortgages

Article submitted by Vanessa White, Vice President of BNY Mortgage Company's Reverse Mortgage division.
For more information, she can be reached at 1-800-269-6797.

As more consumers learn about the versatility of reverse mortgages, this financial planning tool has gained significant popularity. In 2001, more older homeowners used a reverse mortgage to remain in their homes to supplement their retirement income, pay for healthcare expenses, prescription costs, make home modifications, or simply establish a cash reserve for emergencies.

But despite increased popularity, even some of the most basic facts about reverse mortgages are often misunderstood. The most common misconception is, "A reverse mortgage is where the bank gives you some money and then takes your home." That could not be further from the truth. Our mission "... is to inform seniors about the benefits of reverse mortgages so that they can make the empowered decisions about whether this product makes sense for their own particular situation." A reverse mortgage helps people to address their individual needs."

To qualify for a reverse mortgage you must be 62 years old and be a homeowner. You may qualify even if you have an outstanding balance on your first mortgage. There are no credit or income requirements. You can receive the tax-free income in an upfront lump sum, a monthly payment, a line of credit or a combination of all three.

To ensure that you fully understand a reverse mortgage and your other options you do need to see a HUD approved counselor from a third party non-profit organization.

The ultimate goal of this product is to allow seniors to stay in their homes and have a better quality of life. To receive more detailed information regarding Reverse Mortgages or to talk to a mortgage specialist, please call us 1-800-269-6797.