Reverse Mortgages 

Improve your quality of life. Squeeze the equity out of your house.

A reverse mortgage is a loan that allows seniors to use the equity they have accumulated in their home to get rid of financial barriers and continue to live independently in their home.

This financial freedom often improves the quality of their lives.

A reverse mortgage is an option for homeowners 62 years or older who wish to access the equity in their home without obtaining a home equity loan or selling the home.

A reverse mortgage uses the equity built up in the home to give the homeowner cash for any purpose, including making the home more livable and senior-friendly.

Cash can be received in monthly payments to the homeowner, a line of credit, lump sum payments, or a combination of these options.

Other Important Facts:

• You make no monthly payments.
• All borrowers must be 62 or over.
• There are no income qualifications – not income based.
• No tax consequences – this is not income.
• The reverse mortgage is guaranteed by the Secretary of Housing and Urban Development.
• You own your home – the bank does not.
• You will never owe more than the value of your home.
• Maximum loan amount is based on a percentage of the appraised value of your home, but is capped at $362,790 for Plymouth, Norfolk and Barnstable Counties under the Home Equity Conversion Mortgage (HECM) program.
• No repayment until the home is sold, the borrower(s) have been gone from the house for more than 12 months, or after the last borrower’s death, at which point the borrower’s heirs can sell the house or repay the loan and keep the house.
• Closing costs and fees can be financed as part of the loan.

You are not spending your children’s inheritance. A reverse mortgage may actually increase their inheritance by making necessary repairs to the home while improving your quality of life. That takes a big burden off your childrens’ minds.

Involve your attorney early in the process – before you pick a lender.