Frank Chandler is your licensed reverse mortgage loan specialist in Essex County, Massachusetts.
Reverse mortgage loans are a popular financing option in Essex County, Massachusetts, allowing senior homeowners to tap into their home’s equity.
The most popular type of reverse mortgage is the Federal Housing Administration (FHA)-insured Home Equity Conversion Mortgage (HECM) loan. Unless noted otherwise, we’re referring to HECMs when discussing reverse mortgages.
How Does a Reverse Mortgage Loan Work?
Reverse mortgage loans allow homeowners 62 and older to access a portion of their home equity without mandatory monthly mortgage payments, so long as the borrower takes care of property charges, like insurance, taxes and upkeep.
Reverse mortgages are an excellent option for seniors in Essex County, Massachusetts, wishing to stay in their homes but also wanting or needing additional cash flow. Borrowers can use the funds from a reverse mortgage for virtually any purpose, including home improvements, medical expenses or a more fun and fulfilling retirement.
Our Reverse Mortgage Loans in Essex County, Massachusetts
Home Equity Conversion Mortgage (HECM)
This is the most common type of reverse mortgage loan and is insured by the Federal Housing Administration (FHA). The amount of cash available depends on several factors, including the borrower’s age, the home’s value and interest rates.
HECM for Purchase (H4P)
This type of reverse mortgage loan is for purchasing a new primary residence. It can significantly increase homebuying power and enable borrowers to move somewhere more expensive without having to drain their nest egg. Like a traditional HECM, the borrower does not need to make monthly mortgage payments, so long as they pay property charges like taxes, insurance and upkeep costs.
Jumbo Reverse Mortgage Loans
This type of reverse mortgage is for high-value homes that exceed the HECM loan limit of $1,089,300 set by the FHA. Jumbo reverse mortgage loans are a proprietary product not insured by the FHA, so the terms and conditions can vary depending on the lender. The amount of cash available is based on the appraised value of the home, and borrowers typically have more flexibility in payment options.
Reverse Mortgage Loan Benefits
People get reverse mortgages for many reasons, including:
Tax-Free Cash Flow*
The proceeds received from a reverse mortgage are considered loan advances, not income. As a result, these funds are generally tax-free, helping homeowners supplement their retirement income without increasing their tax liability.*
Increase Financial Security
For many seniors in Essex County, MA, the cost of living can be high. The additional source of funds from a reverse mortgage loan can be a great peace of mind for those who worry about their ability to cover unexpected expenses. Even for those unconcerned about the essentials, it can be great to know that additional cash flow is available to have fun in retirement.
Retain Your Homeownership
A reverse mortgage allows homeowners to access their home equity while owning and living in the home. This can help them maintain their independence, avoid the hassle of moving and stay close to friends, family and their community.
No Monthly Mortgage Payments
With a reverse mortgage, monthly mortgage payments are optional so long as the borrower pays taxes, insurance and home upkeep expenses. The loan balance is repaid when the homeowner sells the property, moves out permanently or passes away.
Flexible Payout Options
Reverse mortgages offer various disbursement options to suit the individual needs of homeowners. Borrowers can receive funds in a lump sum, as a monthly payment, a line of credit or a combination of these options, allowing homeowners to tailor their reverse mortgage to their unique financial situations.
Federally Insured
Reverse mortgages in the United States, including those in Essex County, MA, are insured by the Federal Housing Administration (FHA) through the Home Equity Conversion Mortgage (HECM) program, guaranteeing that borrowers will receive their loan proceeds and providing a level of security for both the homeowner and the lender.
Non-Recourse Loan Protection
As the only reverse mortgage loans insured by the Federal Housing Administration (FHA), HECMs are non-recourse loans, meaning the borrower will never owe more than the home is worth at the time of sale.**
For example, suppose a borrower takes a reverse mortgage loan on their home when the housing market is high. The market is low when they pass away, but their heirs still wish to sell the property. In that case, the Mutual Mortgage Insurance Fund pays the remaining difference (administered by the FHA and financed via Mortgage Insurance Premiums paid by all borrowers). This offers great peace of mind to those concerned about passing debts onto heirs.
Fun Facts About Essex County
- The county is home to historic seaports like Newburyport and Gloucester
- Essex County, MA, is renowned for its connection to the infamous Salem Witch Trials of 1692
- Rockport, a coastal town, is famous for its red fishing shack called “Motif No. 1,” often cited as one of the most painted and photographed buildings in the U.S.
- The town of Haverhill is the birthplace of Harvard University’s founder, John Harvard
Interested in a Reverse Mortgage in Essex County?
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*This advertisement does not constitute tax or financial advice. Please consult a tax and/or financial advisor regarding your specific situation. **There are some circumstances that will cause the loan to mature and the balance to become due and payable. Borrower is still responsible for paying property taxes and insurance and maintaining the home. Credit subject to age, property and some limited debt qualifications. Program rates, fees, terms and conditions are not available in all states and subject to change.