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Finance of America Reverse
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Mutual of Omaha Reverse Mortgage
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Fairway Reverse
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Homebridge Financial Services
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Reverse Mortgage Funding
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Radius Financial Group
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Longbridge Financial
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To qualify for a reverse mortgage, Massachusetts residents must be 60 or older with a significant amount of equity in their home. Some lenders may require 50% or more in equity. Also, the home must be considered your primary residence (not a vacation property). Your lender may ask for documentation, like utility bills or vehicle registration cards, to verify your primary residence. Be prepared to meet with a reverse mortgage counselor, as well — it’s a requirement of Massachusetts state law.
In addition, you’ll need proof that you have made on-time payments for both property taxes and homeowner’s insurance premiums. You also can’t have any federal debt in delinquency status (like unpaid income taxes). Individual lenders may have other requirements, so it’s best to reach out to the companies you’re interested in to learn more.
Mortgage rates have been steadily rising. According to national data from the U.S. Department of Housing and Urban Development, the average interest rate for a traditional fixed-rate HECM was 5.61% in September 2022 compared to 3.38% in October 2021. Average HECM purchase rates have also increased from 3.41% in October 2021 to 5.78% in September 2022.
Typical mortgage rates for Boston are slightly higher than the national average, according to data from Zillow. For that reason, you can expect HECM rates to be higher in Boston, although there are individual factors that affect interest rates as well (i.e., the home’s appraised value, the borrower’s age, etc.). It’s beneficial to contact several lenders for an interest-rate quote before you decide on a reverse mortgage option. In general, a higher interest rate will lower the principal (how much you can borrow) and increase overall loan costs.
To start, you’ll need to cover the costs of mandatory reverse mortgage counseling, which typically ranges from $125 to $200. You can expect to pay similar closing costs on a reverse mortgage as on other mortgage loan products. Closing costs can include origination fees, third-party service fees (i.e., home appraisal, real estate attorney, etc.) and mortgage insurance premiums.
In addition, there are ongoing costs associated with reverse mortgages, like service fees and interest payments. Before you start a reverse mortgage, you should receive a document called a Good Faith Estimate (GFE) from the lender that details all of the fees and charges. You can use the GFE to compare lender offerings and find the best deal.
As with any loan product, there are several downsides to consider before you start a reverse mortgage. First, your equity decreases, often significantly, when you get a reverse mortgage. Also, unlike other loans, you won’t pay down your balance over time, so interest continues to accrue. The increased loan balance will cut further into the equity you may have remaining.
Another downside to consider is the funds you receive from the reverse mortgage may affect your eligibility for Social Security Income or for Medicare benefits. It’s best to meet with your financial planner about your situation before you consider a reverse mortgage. Inquire, for example, about what happens if you have to move to a nursing home as well as the consequences for benefactors of your estate, especially if any reside in your home.
You don’t make monthly payments with a reverse mortgage because you are receiving payouts. The loan is repaid later when the home is sold. However, keep in mind that interest does continue to build up on the remaining loan balance. You could choose to make optional monthly payments if you wish.
You can sell your home if you have a reverse mortgage. However, you’ll have to pay the remaining loan balance with any proceeds you make from the sale.
Finance of America Reverse |
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Finance of America Reverse is part of the larger Finance of America Companies, which provides a wide array of lending products to borrowers across the U.S., especially those 55 and older. Finance of America Reverse specializes in HECMs and jumbo reverse mortgages. In 2021, the company originated over $4.2 billion in loans. While it does not currently operate an in-person branch in the area, Boston residents may apply for a reverse mortgage by calling the company’s toll-free number. |
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Mutual of Omaha Reverse Mortgage |
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Mutual of Omaha Mortgage is the mortgage-lending arm of Mutual of Omaha, a Fortune 500 financial services company. The company offers loan products for home purchases and refinances, in addition to HECMs. It originated over $9.2 billion in mortgage loans in 2021. The company provides free retirement-planning calculators on its website, including one to help you evaluate the costs and benefits of a HECM. |
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Fairway Reverse |
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Fairway Independent Mortgage Corporation is a non-bank mortgage lender with over 4,000 licensed employees at more than 700 branches nationwide. In 2021, Fairway Independent originated over $72.5 billion in home loans. The company offers a variety of mortgage loan products, including reverse mortgages for senior borrowers. There are several offices in Massachusetts, including one at 380 West Broadway, Ste. 101, Boston, MA 02127. |
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Homebridge Financial Services |
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Homebridge Financial Services is a privately held lending company in business for more than 30 years. The company offers several loan options to fit individual borrowers’ needs, including conventional loans, government-backed mortgages and reverse mortgages. You can call the company to apply or visit one of its many branches, including convenient locations at 1 Orr Square, Ste. D, Revere, MA 02151 and 960 Morrissey Blvd, Ste. 3, Dorchester, MA 02122. |
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Reverse Mortgage Funding |
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Reverse Mortgage Funding is one of the nation’s top Government National Mortgage Association (GNMA) issuers of reverse mortgages. It’s a subsidiary of Reverse Mortgage Investment Trust Inc, a financial services company. The company offers a broad selection of reverse mortgage products that includes both fixed-rate and adjustable-rate HECMs. Equity Elite, the company’s proprietary reverse mortgage product, is available to borrowers as young as 55 in some states. |
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Radius Financial Group |
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Radius Financial Group is a full-service mortgage lender headquartered in Norwell, MA. It provides several loan options to borrowers, including mortgage loans for purchases and refinances. Radius Financial Group also offers several HECMs to accommodate the unique needs of senior borrowers. You can contact the company directly to be connected with a loan officer who can assist you through the application process. The New England-based company has several office locations in Massachusetts, including one right outside Boston at 120 Campanelli Drive, Ste. 2A, Braintree, MA 02184. |
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Longbridge Financial |
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Longbridge Financial is a mortgage company that specializes in reverse mortgage products. It offers standard HECMs, HECMs for purchases and the Longbridge Platinum, a proprietary jumbo reverse-mortgage product. In 2021, the company originated over $1.2 billion in home loans. Longbridge Financial provides free quotes and other helpful resources, including a reverse-mortgage calculator, on its website. |
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