Frank Chandler is your licensed reverse mortgage loan specialist in Middlesex County, Massachusetts.
Reverse mortgage loans are a popular financing option in Middlesex County, Massachusetts, allowing senior homeowners to tap into a portion of 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 obligatory 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 Middlesex County, MA, who want to stay in their homes but also want or need additional cash flow. Borrowers can use the funds from a reverse mortgage for virtually any purpose, including home improvements, medical expenses or a more enjoyable retirement.
Reverse mortgages are available to homeowners age 62 and older who own their home outright or have a low mortgage balance that can be paid off at closing with proceeds from the reverse mortgage loan.
Our Reverse Mortgage Loans in Middlesex 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 Proceeds*
The proceeds from a reverse mortgage are typically tax-free*, as they are considered loan advances and not income. This can significantly benefit seniors looking to maximize their retirement funds while minimizing their tax obligations.*
Retain Homeownership
Reverse mortgage borrowers retain ownership of their homes exactly as they did before the reverse mortgage. Borrowers can continue living in their property for as long as they meet the loan requirements, allowing them to age in place in the homes they love.
Supplement Retirement Cash Flow
A reverse mortgage loan allows homeowners 62 and older to access their home equity without selling it, creating an important source of supplementary cash flow for seniors on a fixed income. The proceeds can help cover living expenses, medical bills or other financial needs.
Flexible Payment Options
Reverse mortgages offer multiple disbursement options, such as a lump sum, monthly payments, a line of credit or a combination of these options, allowing borrowers to choose the payment method that best suits their needs and retirement goals.
Non-Recourse Loan Protection
HECMs are the only reverse mortgage loans insured by the Federal Housing Administration (FHA). This makes HECMs 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 Middlesex County
- The Battles of Lexington and Concord, which marked the beginning of the American Revolutionary War, took place in Middlesex County
- Middlesex County is home to the Old Manse in Concord, once inhabited by Nathaniel Hawthorne and Ralph Waldo Emerson
- The world-famous Boston Marathon starts in Hopkinton
- The famous Minuteman Bikeway runs through Middlesex County
- It hosts the annual Lowell Folk Festival, celebrating diverse cultures through music, food, crafts and performances.
Interested in a Reverse Mortgage in Middlesex 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.