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Reverse Senior Loans

Cape Cod Reverse Mortgage LenderCape Cod Reverse Mortgage Loans

The Massachusetts Reverse Mortgage is a special type of home loan that allows Cape Cod homeowners to take out equity against their home.

Cape Cod Reverse mortgages were created for seniors 62 years of age or older, who are beginning their retirement and in need of more cash.

As seniors in Cape Cod begin their retirement, their income typically drops and they are not able to live the way they used to anymore.

Basics of Cape Cod Reverse Senior Home Loans

A reverse mortgage is a loan available to seniors, and is used to release the home equity in the property as one lump sum or multiple payments. The homeowner’s obligation to repay the loan is deferred until the owner dies, the home is sold, or the owner leaves (e.g., into aged care).

In a conventional mortgage the homeowner makes a monthly amortized payment to the lender; after each payment the equity increases within his or her property, and typically after the end of the term (e.g., 30 years) the mortgage has been paid in full and the property is released from the lender.

In a reverse mortgage, the home owner makes no payments and all interest is added to the lien on the property. If the owner receives monthly payments, or a bulk payment of the available equity percentage for their age, then the debt on the property increases each month.

A couple of the main eligibility requirements are as listed below:

  • 62 years of age or older.
  • Must own the property, or have paid down a considerable amount (low mortgage balance left to pay off).
  • No delinquencies on mortgage payments or any debt owed to the federal government.
  • Must be occupying the property as a primary residence.
  • Homeowners must also participate in a consumer session (a counseling session that educates the homeowners on the pros and cons of the loan).

There are many great benefits as well to a Reverse Mortgage Loan, there are no credit or income verification since the homeowners are not required to make any type of monthly payments, unlike any traditional reverse mortgage home loan, borrowers are not required to pay anything back.

However, it is important to be current on your monthly mortgage payments with no late payments in the past 2 years.