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Reverse Mortgage Basics 

A reverse mortgage is a home equity loan for seniors age 62 and over1 that allows them to convert the accumulated equity in their home into cash without giving up title or incurring monthly payments of principal or interest.
 

Depending on the reverse mortgage product selected, you can receive payments in the following ways:

•  Lump Sum – the entire amount in a single payment4

•  Tenure – equal monthly payments as long as at least one borrower continues to occupy the property as a principal residence

•  Term – equal monthly payments for a fixed period of time

•  Line of Credit – a credit line that you can draw upon as you need funds4

You can also elect to receive payment using a combination of the above methods. For example, you can choose a combination of an up-front lump sum for immediate needs and a line of credit that can be drawn upon at a later date when additional needs arise.

Determining how much equity you can access
The amount of equity you can borrow is determined primarily by the age of the youngest homeowner, your home's appraised value as determined by the lender and the current interest rate. The older you are, the larger the percentage of your home's equity that can be accessed. 

Borrower Requirements
In most cases, all borrowers and title holders must be 62 years of age or older1, be listed on the property’s title and occupy the home as their primary residence.

Property Requirements
The property being used for the reverse mortgage must be a single-family home, townhouse, condominium or two-to-four-unit dwelling with one unit occupied by the borrower. The borrower(s) must be able to pay off any existing liens with the reverse mortgage proceeds.

Financial Requirements
Repayment of the reverse mortgage loan is not required as long as the property remains the borrower’s primary residence, taxes and insurance are paid and the property is maintained.2  Verification of your ability to pay taxes, insurance and maintenance costs after receiving the proceeds of the reverse mortgage may be required.

Reverse Mortgage Fees
In addition to interest on the amount borrowed, reverse mortgages generally include other fees, such as an origination fee and mortgage insurance premiums. Closing costs can be financed as part of the reverse mortgage loan by having them deducted from the loan amount. Please speak with one of our Reverse Mortgage Specialists to get an estimate of the applicable fees.

To apply for an Eastern Bank Reverse Mortgage, you will need to:

•  Speak with one of our Reverse Mortgage Specialists to determine if a reverse mortgage is right for you.

•  Attend a reverse mortgage counseling session given by a government-approved agency and obtain a certificate of completion.3

•  Work with your Reverse Mortgage Specialist to complete an reverse mortgage application.

For additional information
To learn more about our reverse mortgage products and other important considerations, please contact one of our Reverse Mortgage Specialists or refer to our Reverse Mortgage FAQs

    1. Reverse mortgage products available to seniors as young as 60 years old through Homeowner Options for Massachusetts Elders (HOME). HOME determines eligibility for these products.

    2. Primary residence is based on the title and occupancy requirements of the program.

    3. There may be a fee for this required counseling service.

    4. The amount of funds you may receive as a lump sum or a draw on a credit line is limited in the first year of the reverse mortgage.