Term Reverse Mortgages
If you are considering a term reverse mortgage for a Boston home, the real estate attorneys at Pulgini & Norton may be able to advise and represent you. As the term implies, a reverse mortgage works the opposite of a traditional mortgage. In contrast to traditional mortgages, reverse mortgages allow borrowers to receive payments from lenders. Reverse mortgages can help seniors remain in their houses, converting the home equity into income. The amounts of the payments to the senior are determined in part by how long the senior will remain in his or her home.
With a reverse mortgage, seniors can be more financially secure and enjoy a greater quality of life. Generally, no repayments are due for the lifetime of the borrowing homeowner, or at least not for a specific period of time. Reverse mortgages are also known as home equity conversion loans and reverse annuity mortgages. There are two types of reverse mortgages: term and tenure.Term Reverse Mortgages
The term reverse mortgage provides you as a borrower with income for a certain period. In a tenure reverse mortgage, you are only provided with income as long as you continue to live on the property. A term reverse mortgage can be risky for a borrower, since at the end of the term you may have to sell your home and move. In the past, lenders only provided term reverse mortgages. However, today lenders find the tenure reverse mortgage more risky because as the mortgage debt grows, it may eventually grow larger than the home's value, depending on how long you live.
There are three major reverse mortgages: FHA-insured, Fannie Mae, and private lenders' plans. Most borrowers choose an FHA program, which is subject to limits for geographic area and varies depending on the geographic area's median home prices. Term reverse mortgages have been available since 1983 in Massachusetts. To qualify for a term reverse mortgage, you must own one residence in state, be at least 60 years old, and have an income of $30,000 or less (or $40,000 if you're a couple).
Term reverse mortgages are complex transactions, and you will need to attend a counseling session with a third party. It is wise to consult an attorney about your obligations and any costs, since they may affect any equity that you have already accumulated in your home. You will have to pay property insurance and property taxes. You will have to take care of the property and maintain it so that it retains value.Enlist a Boston Attorney for Your Property Financing Needs
If you are an elderly person, you might want to consider getting a term reverse mortgage. These loans have a fixed term to maturity. They can allow you to pay medical bills and keep you from having to make monthly mortgage payments. The property transactions lawyers at Pulgini & Norton are knowledgeable about home mortgages and can assist Boston residents with exploring their options. Call us at 781-843-2200 or contact us via our online form for a consultation. We also represent clients in other Massachusetts communities, such as Andover, Braintree, and Brookline.