Seniors have more mortgage options

By Korey Welch, Owner of Boom Realty
and Senior Mortgage Broker, Loan Factory

Lending institutions want to lend to seniors and offer many options. The variables include financial goals, income, and homeownership status.
Here are some key options:

  1. Reverse mortgage (Home Equity Conversion Mortgage – HECM)
    You don’t have to be Tom Selleck to understand the advantages of this relatively new, but solid concept.
  • Available to homeowners aged 62+.
  • Converts home equity into cash.
  • No monthly payments; loan is repaid when the home is sold or the owner moves out.
  • Requires FHA-approved lenders and counseling.
  1. Refinancing an existing mortgage
    You might already have an amazingly low rate, 2%-4%. If not, it may be worth looking at.
  • Lower interest rates can reduce monthly payments.
  • Can switch from an adjustable-rate to a fixed-rate mortgage.
  • Possible cash-out refinance for home improvements or medical expenses.
  1. Home equity loan or Home Equity Line of Credit (HELOC)
    There is likely cash in your home. Want to tap that equity?
  • Borrow against home equity.
  • Home equity loans provide a lump sum with fixed payments.
  • HELOC works like a credit line, with flexible withdrawals and payments.
  1. Senior-specific mortgage programs
    This may be a good fit if you are not employed but thrive on other income sources.
  • Some lenders offer mortgages tailored for seniors with retirement income considerations.
  • May allow alternative income verification (pensions, Social Security, investments).
  1. Downsizing and new home loans
    Size matters. Especially if you have to clean it, heat it, and walk it. What are your options?
  • Sell current home and buy a smaller, more manageable home.
  • May qualify for a conventional, FHA, or VA loan (if eligible).
  • Some seniors use a reverse mortgage for purchase (HECM for purchase) to buy a home without monthly payments.
  1. Veterans Administration loans (for veterans and spouses)
    There are many veteran and spouse programs.
  • No down payment required.
  • No private mortgage insurance (PMI).
  • Competitive interest rates.
    Would you like recommendations based on a specific situation?
    Sell Smarter!
    Be very careful when engaging a real estate agent. I have seen a lot of bad advice given by other agents regarding the National Association of Realtors lawsuit settlement changes, which are costing buyers and sellers a lot of money.
    If you are looking to buy or sell, please reach out to me. I only charge a 1% listing agent fee and am routinely saving sellers tens of thousands of dollars in listing fees. I just sold a $2.8-million home in Falmouth and saved the seller $56,000 in listing fees vs. if he listed with another agent.
    Korey Welch, owner of Boom Realty and Senior Mortgage Broker (NMLS: 14991) with Loan Factory (NMLS: 320841), is a licensed mortgage broker/real estate broker based in Rockland. For more than two decades, Korey has been helping seniors determine the best fit. For a complimentary consultation, contact him at korey@koreywelch.com, 781-367-3351.