Reverse Mortgage Binghamton NY

The baby boom generation has graced the golden age. Today, seniors have become a significant consumer segment in the economy. With the fast growing population of elders and retired citizens, financing companies are finding ways to meet the core of seniors' needs. One such benefit that seniors greatly enjoy is reverse mortgage financing.


1 . Local Companies

Citizens Bank - Vestal Parkway / Wal-Mart
607-729-6946
2405 Parkway E
Vestal, NY
Consumer Marketing Services Inc
(607)724-5221
20 Hawley Street Suite 800e
Binghamton, NY
Monroe Title Insurance Corporation
(607)687-1776
176 Main Street
Owego, NY
Commonfund Mortgage Corporation
(607)798-0900
3439 Vestal Parkway East
VESTAL, NY
Cambridge Company
(607)748-3195
231 Main Street
VESTAL, NY
Citizens Bank - Binghamton / Main
607-723-5391
84 Court Street
Binghamton, NY
Citizens Bank - Endicott Drive Thru
607-754-9872
12 Madison Avenue
Endicott, NY
Four Corners Abstract
(607)772-6976
71 State Street
Binghamton, NY
Farrell Realty USA Com
(607)754-4040
3660 George F Highway
ENDICOTT, NY
Citifinancial
(607)797-9523
365 Harry L Drive Suite 7
JOHNSON CITY, NY

2 . Defining a Reverse Mortgage

A reverse mortgage is an outlet for elders to enjoy the true value of their homes as cash treatments. By definition, reverse mortgages are loans handed out to seniors to convert part of their home equity as tax-free income. The design of reverse mortgage for seniors allows its beneficiaries to have a stronger sense of financial independence by giving them extra income without the added burden of paying a monthly return on loans.

Reverse mortgages can be issued for borrowers without their selling their homes, giving up the title, or making monthly mortgage payments. This loan is initially useful for people who are cash poor, but asset adequate in their financial standing. With this extra source of ready cash, seniors can decide what to do with the money, whether they want to spend it on an extra trip abroad, ensure their daily living allowance, or improve their homes. The word "reverse" denotes that the flow of money in this loan starts from the lender back to the borrower. The borrower can choose to be paid in lump sum or monthly allowance. Reverse mortgage loans will not be repaid until the borrower leaves his home.

3 . Different Kinds of Reverse Mortgages

There are two major forms of reverse mortgages, Home Equity Conversion Mortgage (HECM) and Home Keeper Mortgage. HECM offers seniors the room to tap the equity of their home and convert it into ready cash, with all the flexibility and understanding given to the senior borrower. This loan is primarily designed by the U.S. Department of Urban Housing and Development and the Federal Housing Administration. With HECM, borrowers can use the proceeds from their loans as they wish and choose the payment plan that they prefer. Once the loan becomes active, the value of the loan is supported by the value of your home that you do not need to pay until you leave your home at your death, sell the property, or do not occupy the home as a primary residence for 12 months. The reverse mortgage is designed for seniors to repay their loans by selling their estate, although this is not required. Once the loan is marked for repayment, you have to pay in a lump sum.

The Home Keeper Mortgage is a reverse mortgage that offers more options than the HECM. This is designed by Fannie Mae, the largest investor for home keeper mortgages. In this plan, borrowers can choose between monthly payments for life, a line of credit, or a combination between monthly payment and line of credit. With the line of credit in place, borrowers who opt for home keeper mortgage can finance their new home using this type of loan. In this sense, the borrower will need less cash to buy a new home or pay for new mortgage bills in the future.

4 . Difference of HECM and Home Keeper Mortgage

HECM's and Home Keeper Mortgages essentially follow the same set of principles in which reverse mortgages are defined. However, seniors are given the power to choose on these two plans, or any other reverse mortgage products on the market, so the borrower can decide what is the best financial plan for him. In Home Keeper Mortgages, the benefits are reduced for couples. Interest rates are also higher in Home Keeper Mortgages than HECM. The line of credit for HECM grows, whereas Home Keeper Mortgages does not. Fannie Mae also offers a higher lending limit and a higher monthly payment for their borrowers compared to HECM.
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