Sound Advice On Reverse Mortgages For Melrose MA Properties
Melrose MA reverse mortgages can be beneficial in certain circumstances. It is critical to understand the pros and cons before using this mortgage option. This blog provides advice on reverse mortgages for Melrose MA properties.
Definition of a Reverse Mortgage
A reverse mortgage is a specific type of Melrose MA home loan that allows you to convert a portion of the equity in your property into cash. However, unlike traditional equity loans, home owners do not have to make monthly payments towards the loan. Repayment is delayed until the borrowers no longer use the home as their primary residence or fail to meet the requirements of the loan. The amount owed includes the equity taken out, interest on the reverse mortgage, and other associated fees.
Who Qualifies for Reverse Mortgages
Not every Melrose MA home owner can use a reverse mortgage. You must…
- Be at least 62 years old.
- Own a home that you occupy as a primary residence.
- Have a qualifying property type.
- Have equity in the property.
- Have consulted with a reverse mortgage counselor.
Loan Amount Calculation
The amount of a reverse mortgage depends on the age of the home owner, the prevailing mortgage rates, the appraised value of the residence, and FHA mortgage insurance limitations. Older homeowners may borrow against a higher amount equity. The funds can be disbursed all at once, a small amount each month, or through a line of credit.
Further Advice On Reverse Mortgages For Melrose MA Properties
Reverse mortgage programs are offered by most mortgage companies. Closing fees can be significant, 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 smart to obtain estimates from a few different lenders. The advice on reverse mortgages for Melrose MA properties provided in this blog is intended simply as an overview. Guidelines may change, so speak to Melrose MA reverse mortgage professionals for information relevant to your situation.