Drawing money from the Equity in Your Home. A reverse mortgage can provide income to seniors who are "house rich" but "cash poor." It can be used to boost your standard of living during the retirement years, to supplement the costs of long term care and/or an estate planning strategy.
Our legal professional can explain the pros and cons of reverse mortgages and help you determine if a reverse mortgage makes sense for your needs and goals. We advise homeowners and lenders in the Greater Boston area and surrounding counties in Massachusetts in New Hampshire.
How it works. A reverse mortgage is just as it sounds. Rather than making payments, you take money out with no payments along the way. If you own your home outright or have equity, this can be a useful source of income.
Advantages of a reverse mortgage:
- The money is tax free
- There are few, if any, restrictions on what you can do with the money
- You are not personally liable on the debt
- You do not have to income qualify for the loan
You continue to own your home
Downside of a reverse mortgage:
- Spending down the equity reduces your children's inheritance
- The reverse mortgage becomes due upon death or the sale of your property, or if you fail to occupy the property for 12 consecutive months
- Currently only available for a primary residence
Estate Planning Possibilities with a Reverse Mortgage. Our knowledgeable lawyers can help you incorporate a reverse mortgage in your overall estate and tax planning. For example, drawing down the equity may be useful for reducing the taxable estate for estate tax purposes. Another common use of a reverse mortgage is funding an irrevocable life insurance trust for the benefit of your heirs.
We work with reverse mortgage professionals throughout Massachusetts and New Hampshire. If you are considering a reverse mortgage let us help you find the right advisor for your location and situation.
To schedule an appointment to discuss your reverse mortgages questions or needs please contact our real estate department at 617-523-1555 or submit your contact information by completing our contact us form.