Mary Foley Real Estate Inc.
Mary Foley Real Estate Inc.


Posted by Mary Foley Real Estate Inc. on 8/4/2020

Photo by 3D Animation Production Company via Pixabay

If you’re retired, own your own home and have trouble making ends meet, a reverse mortgage may seem like the answer to prayers. You get to stay in your house and you’ll have some extra cash to see you through. Before you run to the nearest lender, however, consider the downside as well as upside to these instruments.

What is a reverse mortgage?

A financial institution lends you money, either a lump sum, a stream of payments or a line of credit, against the equity in your home. Unlike most loans, however, you’re not required to pay it back on a regular basis. You can let the loan ride until you die, move or sell the home, at which your home is sold and the proceeds pay off the loan.

While there are several flavors of reverse mortgage, most are insured by the Federal Housing Administration (FHA) under a program called the Home Equity Conversion Mortgage (HECM).

Am I eligible for a reverse mortgage?

Everyone on the title must be 62 or older. The home must be your primary residence, and your equity needs to be at least around 50 percent. Also, you have to attend consumer counseling before signing up.

What are the pros of a reverse mortgage?

  • You stay in your home. You keep the title until you sell, move or die.

  • There are no required monthly payments. Any previous home loans are paid before you receive your proceeds.

  • If you choose to make payments, there’s no prepayment penalty.

  • The money you receive is not taxable, nor does it affect your Social Security or Medicare eligibility.

  • The loan is non-recourse. Regardless of your loan balance, you'll never have to pay back more than the house is worth.

What are the cons of a reverse mortgage?

  • Unless you make payments, the loan amount will continue to increase. It’s unlikely you’ll pass the home on to your heirs.

  • You must continue to pay taxes, insurance and necessary maintenance and repairs. Failure to do so can lead to foreclosure.

  • There are upfront and ongoing mortgage insurance premiums as well as a loan origination fee. These (and interest rates) trend higher than for other mortgage loans.

  • Your favorite bank may not offer reverse mortgages. Most issuers are small banks, credit unions and online lenders. Some lenders have made misleading claims that understate the risk.

  • If you go into a nursing home you will have to sell the home and pay off the loan.

  • While Social Security and Medicare are not an issue, reverse mortgage income can affect your eligibility for Medicaid and Supplemental Security Income.

Should I apply for a reverse mortgage?

If you plan to stay in your home well into retirement and are having trouble with ongoing expenses, it may be right for you. However, if you aren’t cautious about what you’re getting into, or if you’ll have trouble paying taxes, insurance and upkeep even with the extra money, it isn’t a wise choice.




Categories: Uncategorized  


Posted by Mary Foley Real Estate Inc. on 7/28/2020

This Single-Family in Orange, MA recently sold for $112,000. This Colonial style home was sold by - Mary Foley Real Estate Inc..


182 N Main St, Orange, MA 01364

Single-Family

$95,000
Price
$112,000
Sale Price

6
Rooms
3
Beds
1/1
Full/Half Baths
Come see this charming colonial in Orange with 3 bedrooms, 1.1 bathrooms and a total of 1,852 square feet of living space. Spacious first floor with a large kitchen with plenty of cabinet space along with an area for a large table. Off the kitchen leads to a deck overlooking the rear yard and above ground pool. There is a formal dining and living room located off the kitchen. Spacious bedrooms which all feature hardwood.1 car detached garage. Full basement for added storage. Make this home yours today!

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Categories: Sold Homes  


Posted by Mary Foley Real Estate Inc. on 7/28/2020

When it comes to adding your residence to the real estate market, it is always better to err on the side of diligence.

Ultimately, there are many reasons to become a diligent home seller, including:

1. You can price your house competitively from the get-go.

For those who want to become diligent home sellers, it is paramount to set a competitive price from the get-go. By doing so, a diligent home seller can stir up plenty of interest in his or her house and boost the chances of a quick home sale.

A diligent home seller will allocate the necessary time and resources to learn about the real estate market. As such, this home seller will have no trouble establishing a competitive price for his or her residence from day one.

In addition, a diligent home seller will examine the prices of available houses that are similar to his or her own. With this housing market data in hand, a diligent home seller can establish a price range for his or her residence.

2. You can identify home improvement opportunities.

A diligent home seller likely understands that his or her residence has various pros and cons. At the same time, this property seller recognizes home improvement opportunities.

To learn about home improvement opportunities, a diligent home seller usually will conduct a home appraisal. This appraisal enables a property inspector to evaluate a residence and provide the home seller with an in-depth report about the house's condition. Then, the home seller can use these property insights to streamline his or her home improvement efforts.

Completing a series of home improvements can make a world of difference in the eyes of homebuyers. In fact, a diligent home seller will prioritize home improvement projects and finish assorted home interior and exterior tasks to transform an ordinary residence into a stellar one.

3. You can keep your cool in stressful negotiations with a homebuyer.

Let's face it – no home seller wants to worry about stressful negotiations with a property buyer. Fortunately, a diligent home seller will know what it takes to remain calm, cool and collected as home selling negotiations proceed.

A diligent home seller will understand the true value of his or her house. Thus, this home seller can enter negotiations with actionable data to help him or her make informed decisions.

Plus, a diligent home seller will maintain an open approach throughout negotiations. This approach will enable a home seller to listen to what a homebuyer has to say at all times. And if a home seller maintains an open approach, he or she increases the likelihood that all parties involved in negotiations will get the best possible results.

If you ever need extra assistance as you prepare to list your residence, you can always reach out to a real estate agent too.

Even a diligent home seller will collaborate with a real estate agent to get home selling guidance. That way, a diligent home seller can move one step closer to optimizing the value of his or her residence.




Categories: Uncategorized  


Posted by Mary Foley Real Estate Inc. on 7/21/2020

You may have heard the term “escrow” in your experience with real estate. You might know it’s an account, but what exactly does it do for you as a buyer? An escrow account is what your lender uses to make payments on things like property taxes, insurance, and more. The lender collects your monthly mortgage payment, and part of that cash goes into an escrow account. 


This type of account is an excellent option for homeowners because your bills relating to being a homeowner will all be paid without you having to do anything. It makes budgeting a breeze because there aren’t any complicated calculations involved. Every month, your lender collects 1/12 of the estimated tax bill and insurance cost for the home. The rest of your mortgage payment covers the principal and interest on the loan of the house.


Are Escrow Accounts Mandatory?


You’ll find that most lenders require you to have an escrow account. The purpose of the account is to keep the home safe as collateral for the loan. The bank has an interest in the proper insurance behind the property. The taxes also need to be paid on time in order to keep the property in good standing. If the taxes aren’t paid, a tax lien will be placed against the house. 


Everything In One Place


You’ll receive an annual statement from your lender that will show you how much money was collected and placed in your escrow account. Escrow payments often change because insurance premiums and taxes tend to change quite frequently. The amount being put into escrow may change a few times throughout the year. The lender keeps track of all this for you, saving you some time. 


Bills That Need To Be Paid


Whether you have an escrow account or not the bills that are included must be paid one way or another. It’s a good idea to speak with your lender before you buy a home to find out that bank’s procedures around these insurance and tax payments. Property tax and home insurance are items that you’ll need to budget for regardless of how your lender does things. An escrow account can be much more convenient for many buyers. 


Escrow is just another one of the many essential terms that you’ll come across as a homebuyer. Knowing the advantages and purpose of the account helps you to be informed as you dive into the home buying process. 





Tags: Mortgage   Buying a home  
Categories: Uncategorized  


Posted by Mary Foley Real Estate Inc. on 7/18/2020

This Single-Family in Fitchburg, MA recently sold for $195,000. This Cape style home was sold by - Mary Foley Real Estate Inc..


303 Ashby State Rd, Fitchburg, MA 01420

Single-Family

$190,000
Price
$195,000
Sale Price

7
Rooms
3
Beds
1
Baths
Fantastic opportunity! Enjoy country living with 6+ acres of fruit trees, private patio, tennis court, 2 accessory structures close to Ashby but less than 5 minutes to Fitchburg state and Wallace Civic Center. Approximately 5 miles to Rt 2. This Cape home needs some TLC but will make a wonderful home. It offers bright sunny rooms with hardwood floors in the bedrooms. The master has a large walk in closet There is also a hardwood staircase, a first floor office, large living and dining room. The living room also has a fireplace for cozy winters. The kitchen has an eat in area and built in hutch. In the basement you will find a sauna and shower. The heating system and hot water tank was updated in 2016. This property may not qualify for FHA/VA financing as the electrical may need upgrading. Come see why this would make a fabulous home! Offers due by Monday at 5pm, thank you!

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Categories: Sold Homes