Reverse mortgages can be a great option in certain circumstances. It is critical to get all the facts before getting a reverse mortgage. This article offers details on reverse mortgages for MA real estate.
What Is a Reverse Mortgage
A reverse mortgage is a special kind of mortgage that allows you to get cash for the equity in your home. However, it differs from other types of loans in that borrowers are not required to make monthly payments towards the loan. The loan is paid back when the homeowners no longer occupy the home as a principal residence or no longer meet the terms of the loan. The amount owed includes the equity taken out, interest on the reverse mortgage, and other associated charges.
Eligibility for Reverse Mortgages
Not every home owner can use a reverse mortgage. You must…
- Be age 62 or older.
- Own a home that you use as a primary residence.
- Have a property type that fits HUD requirements.
- Have equity in the home.
- Have attended a reverse mortgage counseling session.
Loan Calculation
The amount of a reverse mortgage is based on how old you are, the current mortgage rates, the appraised value of the property, and FHA mortgage insurance limitations. Older borrowers may use more equity. The funds can be disbursed all at once, a little bit each month, or through a credit line.
Further Details On Reverse Mortgages For MA Real Estate
Reverse mortgage options are completed by most mortgage companies. Up-front charges can be significant, so it should only be used by homeowners who do not qualify for traditional mortgages. Program specifics and charges can vary, so it would be smart to obtain quotes from a few different providers. The details on reverse mortgages for MA real estate shown above is meant only as an overview. Requirements may vary, so speak to reverse mortgage professionals for advice specific to your situation.
Details On The Qualified Mortgage Rule For MA Home Loans