Reverse mortgages may be beneficial in certain circumstances. It is essential to understand the advantages and risks in order to make an educated decision. This article offers information on reverse mortgages for MA seniors.
Reverse Mortgage Explanation
A reverse mortgage is a special type of mortgage that allows you to get cash for the equity in your home. However, it differs from other types of loans in that home owners do not have to make monthly payments towards the loan. The mortgage is paid back when the borrowers no longer occupy the home as their primary residence or no longer comply with the requirements of the mortgage. The amount owed includes the cash taken out, interest on the reverse mortgage, and other associated fees.
Qualification Criteria for Reverse Mortgages
Not every home owner can use a reverse mortgage. You must…
- Be age 62 or older.
- Own a property that you live in as a primary residence.
- Have a property type that fits HUD guidelines.
- Have equity in the property.
- Have attended a reverse mortgage counseling session.
How Much Can You Borrow?
The amount of a reverse mortgage is based on how old you are, the prevailing mortgage rates, the appraised value of the residence, and FHA mortgage insurance limitations. Older borrowers are allowed to use a higher amount equity. Cash can be disbursed as a lump sum, in monthly increments, or through a line of credit.
More Information On Reverse Mortgages For MA Seniors
Reverse mortgage options are provided by most mortgage companies. The closing costs are traditionally more than other mortgage options, so it should only be used by homeowners who do not qualify for traditional loans. Program terms and fees can vary, so it would be wise to obtain quotes from a few different companies. The information on reverse mortgages for MA seniors provided in this article is intended simply as an overview. Requirements may vary, so consult with reverse mortgage professionals for details based on your situation. For additional information, contact Christopher Graves at 978-376-5389 or christopher.d.graves@gmail.com