Recently, I received a call from a couple living in Hartsdale. The house is solely in the husband's name, and they were concerned about what would happen to the wife's rights if they applied for a reverse mortgage. Such questions come up more often than you might think. When only one spouse is over 62 or the title is in just one name, this is a crucial point that needs to be addressed during consultations. In this article, I will outline the factors to consider when looking into reverse mortgages in Hartsdale and the surrounding Westchester County area, using this case as a reference.

A reverse mortgage is a product that allows homeowners aged 62 and older to receive funds by using their home equity as collateral. Unlike a traditional mortgage, where you make monthly payments, in a reverse mortgage, you receive funds from the lender in a lump sum, monthly payments, or a line of credit. In simple terms, it's like withdrawing the principal repayment and the increase in home value that you have built up over the years. The loan is repaid when the home is sold, the owner passes away, or the home is no longer used as the primary residence. The most common type is the Home Equity Conversion Mortgage (HECM), which is the only reverse mortgage insured by the federal government.

According to Zillow, the average home value in Hartsdale is around $677,751 as of 2026. Given that this area is known for its good school districts, long-time Korean families may have built up significant equity. However, having a lot of equity does not automatically mean that a reverse mortgage is advantageous. While it can help cover living expenses or medical costs in retirement, there are costs and conditions that need to be carefully considered.

Starting with the eligibility requirements, you must be at least 62 years old, and the home must be your primary residence. If there is an existing mortgage balance, it must be at a level that can be paid off with the reverse mortgage funds, and you must pass a financial assessment to ensure you can continue to pay property taxes and insurance. The issue of the spouse's name is also checked at this stage. Even if only one spouse is over 62, it's important to confirm whether there are provisions in place for the non-borrowing spouse to continue living in the home, which should be thoroughly reviewed during the consultation process.

In terms of costs, there are origination fees, an initial mortgage insurance premium of about 2%, an annual insurance premium of around 0.5%, and closing costs, making the initial costs higher than a traditional mortgage. Westchester County is known for its high property tax burden within New York State, with an effective tax rate of around 1.51%, and the annual property tax for a median home exceeds $10,000. Even if you receive a reverse mortgage, you must continue to pay these property taxes and homeowners insurance, and failure to do so can lead to default, which is a critical point to remember.

The advantages include securing cash flow without monthly repayment obligations and the non-recourse loan structure, which means that if the home value falls below the loan balance, heirs are not required to pay the difference thanks to FHA insurance. Conversely, a downside is that over time, the equity in the home decreases, which can reduce the assets passed on to children. New York has a steadily increasing elderly population, with those aged 65 and older making up 18.9% of the total, so this concern is not unique to families in Hartsdale.

Before applying for a HECM, you must undergo mandatory counseling from a HUD-approved counseling agency. This counseling can address issues such as the spouse's name, financial situation, and alternatives like downsizing or home equity loans. Since there are actual scams targeting seniors related to reverse mortgages, it's especially important to be cautious of unsolicited calls or pressure to act quickly. This article is not investment or legal advice, and factors like spouse names or property taxes can vary by family, so it's advisable to discuss these thoroughly with family and consult with HUD before making decisions.