New York reverse mortgage loans were designed with the specific purpose in mind of helping senior citizens cash out the equity that they've built up in their homes without incurring any monthly payments or risking losing their houses. The money from a New York reverse mortgage loan can be drawn out as a single lump sum or as a steady stream of monthly payments. The terms and process required to secure a New York reverse mortgage can be quite complex, and it's better to fully research how they work if you're considering getting a New York reverse mortgage.

There are rules that govern which individuals are eligible for New York reverse mortgage loans. First of all, you must be at least sixty-two years of age at the time of the mortgage closing. These New York reverse mortgage loans can be subjected to abuse by some unscrupulous lenders and for that reason, the law mandates that reverse loan applicants first attend an education course approved by the government. This is free and will provide the prospective borrower with some valuable bits of necessary information.

As indicated in the first paragraph, there are no payments due on money taken out on these New York reverse mortgage loans until one of the following three scenarios happen. The first is if the borrower passes away; the second is if the borrower leaves the home and no longer resides there and the third is if the home is sold. This means that there is no scenario where the borrower is subject to losing his or her home.

If there are any outstanding normal mortgages still attached to the home, then these must be paid in full with the proceeds of the New York reverse mortgage with the balance of the reverse mortgage going to the borrower.