Senior Homeowner Division launched by Harbor Mortgage.

Harbor Mortgage Solutions, of Braintree, MA, established in 1978 to serve the lending needs of Metro Boston residents, has launched a Senior Homeowner Division, to serve the diverse needs of seniors by utilizing customized solutions, including reverse mortgage options.

“In meeting with older clients and their families, it has become increasingly clear that many senior homeowners are not aware of current marketplace options, and are, in fact, in need of customized mortgage counseling to review those options,” notes George A. Downey, President and founder of Harbor Mortgage Solutions, Inc.

This process often also brings to light the need for expert advice and coordination with other professionals on many issues, including tax and estate planning, health care, or elder law topics. “We do the right thing for each client, every time,” explains Downey. He elaborates, “Each situation is unique and requires a customized plan – with or without a reverse mortgage.”

“Seniors Only” Options”
Converting home equity to cash has become an accepted means of financing home improvements, putting the kids through college, consolidating debts, and meeting a myriad of other financial needs as US homeowners tap into the burgeoning equity in their homes.

Yet how many seniors and their families are aware of the options that are available ONLY to those over age 62 to convert their home equity into cash?

A reverse mortgage, essentially the opposite of a traditional or “forward” mortgage, can enable seniors to tap into accumulated equity without having to face ongoing payments. Unlike traditional mortgages where borrowers make monthly payments, in a reverse mortgage the cash flow is reversed, and the lender makes payments to the borrower, enabling borrowers to use the tax free cash they receive in any way that they wish.

There are no minimum income, asset, or credit qualifications to meet and no effect on Social Security or Medicare benefits. The property must be the primary residence of the borrower and properly insured and maintained, with real estate taxes kept current. As long as the borrower continues to live in the property the loan can never be called.

Unlike a traditional mortgage where the balance starts high and the borrower’s monthly payments systematically reduce the loan balance, the balance of a reverse mortgage loan starts low and continues to increase as more cash is drawn and the deferred interest charges are added to the balance. Repayment is required if the home is sold, or when the last borrower permanently leaves the property, or passes away. At that time, the heirs can sell, or refinance, the property to pay off the loan.

Once the province of a few small banks and private lenders, the great majority of reverse mortgages today are provided through government-sponsored programs, namely the HUD/FHA Home Equity Conversion Mortgage (HECM) and the Fannie Mae Home Keeper (HK) programs.

Dispelling Myths and Misconceptions
Mention a “reverse mortgage” and many people conjure up desperate images of the sheriff on the doorstep with a foreclosure notice. Nothing could be further from the truth. In fact, reverse mortgages serve the needs of a wide array of seniors, not only those who are cash strapped and on the verge of being forced to sell their homes. Instead, these programs may prove to be one of the most valuable financial resources available to a growing number of seniors who have established significant equity in their homes.

Facts and Figures
The volume of reverse mortgages today is miniscule compared to traditional (forward) mortgages, but their popularity is gaining rapidly as more seniors become aware of their unique terms and capabilities. According to the Mortgage Bankers Association, reverse mortgage volume has increased an average of 238% per year

Customized Harbor Mortgage Solutions
Specializing in conventional residential and reverse mortgages, Harbor Mortgage Solutions, Inc. is located at 100 Grandview Road, Suite 105 in Braintree, MA. George A. Downey, who is now joined by his son Christopher Downey, founded family owned and operated Harbor Mortgage Solutions in 1978. Assisted by a staff of experienced mortgage professionals, Harbor Mortgage Solutions is dedicated to providing customized service, obtaining the best possible solution for each individual client every time. An equal opportunity lender licensed in Massachusetts and Rhode Island, Harbor Mortgage Solutions is a member of the Massachusetts Mortgage Association, the National Association of Mortgage Brokers, and the National Reverse Lender Mortgage Association, and strictly subscribes to their rigid code of ethics.

For additional information on services offered by Harbor Mortgage please call 781-843-5553 or 800-599-8700, or visit www.HarborMortgage.com.