1-866-840-0279Maryland Reverse Mortgages
A Maryland reverse mortgage can help you achieve the financial freedom you deserve while living in the state you love.
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How a Reverse Mortgage Works in MD
Maryland homeowners looking for a way to improve their financial freedom may be able to use a home equity conversion mortgage (HECM) to pursue the life they deserve. Often called a reverse mortgage, these loans allow borrowers to tap into a portion of home equity and convert it into tax-free cash proceeds. The funds can be used for a wide variety of expenses, such as:
GoodLife’s reverse mortgage guide contains more information on how the HECM program works, so you can feel confident about the decision you make for your financial future.
Reverse Mortgage Qualifications & Requirements
The HECM program is government-regulated, insured by the Federal Housing Administration (FHA), and overseen by the Department of Housing and Urban Development (HUD). Reverse mortgages in Maryland must therefore comply with the federally-imposed regulations.
According to the HUD, HECM loan applicants must meet these requirements:
Looking for more information? Read our guide to reverse mortgage eligibility. To better understand your specific situation, you can also speak with a GoodLife Reverse Mortgage Specialist.
Maryland Reverse Mortgage Calculator
Our reverse mortgage calculator can give you a free estimate of how much home equity you may be able to access to increase your cash flow.
Maryland Reverse Mortgage Process
Before you can receive reverse mortgage loan proceeds, borrowers must complete the reverse mortgage application process. GoodLife follows a simple, four-step model:
Consultation
First, a reverse mortgage specialist will explain Maryland reverse mortgages and discuss the terms of your loan — we will also help to determine whether a HECM is the wisest option for your financial situation.
Counseling
Second, as previously mentioned, all reverse mortgage applicants are required to attend a HUD-approved counseling session. This ensures that a third-party authority has provided all the necessary information for applicants.
Application
Once you’ve met with the HUD-approved counselor, you can move on to your application. During this phase, an FHA appraiser will also visit the property to ensure it complies with FHA guidelines, and to value the home.
Funding
After this stage, the application can be submitted, processed, and approved. If your application is approved, you may choose to receive your loan proceeds as a lump sum, a line of credit, or in monthly installment.
Reverse Mortgages in MD: FAQs
How are reverse mortgages calculated?
Three factors will play into the value of your HECM loan: 1) the youngest borrower’s age; 2) the property’s appraised value; 3) current interest rates.
How are interest rates determined?
Interest rates can vary depending on current conditions. An individual borrower’s rate can also be fixed or variable. During the application process, your reverse mortgage lender will use an index and margin to determine the appropriate rate for your loan.
Do you make monthly payments on a reverse mortgage?
No, borrowers do not have to repay their reverse mortgage loan until it reaches maturity and becomes Due and Payable, but you can make monthly payments to the balance and interest if you choose without a prepayment penalty. However, you are required to pay mortgage insurance and property taxes to stay current on the loan.
Download the Reverse Mortgage Guide
Fill out the form to download our comprehensive GoodLife Guide to Reverse Mortgages or call to speak with a GoodLife Specialist!
