Reverse mortgages could be beneficial in certain circumstances. It is important to get all the facts before getting a reverse mortgage. This blog offers details on reverse mortgages for MA homes.

Reverse Mortgage Overview

A reverse mortgage is a special type of home loan that allows you to convert a part of the equity in your property into cash. However, unlike traditional equity loans, borrowers are not required to make monthly payments towards the loan. Repayment is delayed until the homeowners no longer use the property as a principal residence or fail to comply with the requirements of the mortgage. The amount paid back includes the equity taken out, interest on the loan, and other applicable fees.

Who Qualifies for Reverse Mortgages

Not every home owner can use a reverse mortgage. You must…

  • Be at least 62 years old.
  • Own a home that you live in as a primary residence.
  • Have a qualifying property type.
  • Have equity in the real estate.
  • Participate in a reverse mortgage counseling session.
  • How Much Can You Borrow?

    The amount of a reverse mortgage is based on the age of the borrower, the current interest rates, the appraised value of the home, and FHA mortgage insurance limits. Older borrowers are allowed to extract a higher amount equity. Cash can be received as a lump sum, a fixed amount each month, or through a credit line.

    Additional Details On Reverse Mortgages For MA Homes

    Reverse mortgage programs are completed by most mortgage companies. Closing charges are high, so it should only be used when no other mortgage programs are feasible. Program specifics and fees can differ, so be sure to obtain estimates from a few different mortgage providers before making a decision. The details on reverse mortgages for MA homes provided above is intended simply as an overview. Program terms may vary, so contact reverse mortgage experts for advice based on your situation.