The typical value of a home in Boston is $788,881 (Zillow, based on 2026 data). This number suggests that long-term homeowners likely have significant equity built up. In fact, there was a recent inquiry regarding a spouse's name issue. The question was whether the surviving spouse could continue living in the home after the borrowing spouse passed away. The weight of such questions increases in high-value cities, as the stakes among family members can become more complex due to the larger equity involved.

A reverse mortgage is a product that allows homeowners aged 62 and older to receive funds from a lender using the equity in their home as collateral. Unlike a traditional mortgage that requires monthly payments, funds can be received as a lump sum, monthly payments, or a line of credit, with the loan principal and interest repaid when the home is sold, the owner passes away, or the home is no longer used as the primary residence. A prominent product is the HECM, which is insured by the Federal Housing Administration.

Returning to the spouse issue, if only one spouse is 62 or older at the time of application, or if the other spouse is not listed as a borrower on the loan documents, the residency rights may become complicated later. This aspect needs to be carefully verified before applying. In areas like Boston, where many couples have lived in the same home for a long time, confirming these spouse-related details is particularly important. The ways to receive funds include lump sum, monthly payments, and a line of credit, and mixing these options is also possible. The best method depends on future spending plans. If only one spouse is listed as a borrower, there are provisions that allow the surviving spouse to defer repayment and continue living in the home if certain conditions are met, but the requirements can vary by case, so it is essential to confirm them from the documentation stage.

In terms of costs, the initial expenses, including origination fees, mortgage insurance premiums (MIP, initially around 2% + 0.5% annually), and closing costs, are generally higher than those of a traditional mortgage (CFPB). The effective property tax rate in Massachusetts is about 1.07% (Tax Foundation, based on 2026 data). It is important to consider that in high-value areas, the absolute amount of property tax also increases. It should always be explained that having significant equity does not necessarily mean having ample liquid funds.

Over time, the loan balance increases while equity decreases. This means that the assets passed on to children may also diminish. If property taxes, insurance premiums, and maintenance costs are not continuously paid, there is a risk of default. The structure of interest and insurance premiums being added to the balance each month can lead to equity decreasing faster than initially expected. However, HECM is a non-recourse loan, so if the home value falls below the loan balance, heirs are not required to pay the excess due to FHA insurance.

Eligibility requirements include being at least 62 years old, using the home as the primary residence, the ability to repay any existing mortgage, and passing a financial assessment to confirm the ability to pay property taxes and insurance premiums. Mandatory counseling with a HUD-approved counseling agency must also be completed before applying. It is important to clarify that this financial assessment is not just a formality; it is a step to ensure that the applicant can continue to manage property taxes and insurance premiums after applying.

In Massachusetts, the proportion of the population aged 65 and older is 17.1%, which is close to the national average (Massachusetts Healthy Aging Report, 2025). As the retirement population increases, the demand for related counseling is also rising, but cases of fraud targeting the elderly are also on the rise. Alternatives such as downsizing or using a traditional home equity loan are available, so it is better to compare multiple options rather than deciding on just one product. This article is not investment or legal advice, and it is recommended to discuss thoroughly with a HUD counselor and family before applying.