Rick Giese Gives Macomb County MI Gives Seven Things Seniors Should Know About Reverse Mortgages

Let me begin by saying, I am not a mortgage specialist and I advise you to consult with one for more information. If you want to contact me, I'll be happy to refer you to a couple around the Macomb County area.  Also, consider speaking with the appropriate experts in the area in which you may have other questions such as, income taxes, property taxes, homeowner's insurance, etc.

So,  What is a Reverse Mortgage?

Allows homeowners age 62 and older to convert part of the equity in their primary residence into cash and have No Monthly Debt.  There is No Income or Credit Score Requirements.  Cash received from a Reverse Mortgage is tax-free and can be used for any purpose.  Homeowners retain ownership and cannot be forced to leave their home when all loan terms are being met.  The loan, including accrued fees, is due when the home is vacated due to sale, moving, or death of the owners.  Neither the owners nor their heirs are personally liable for more than the value of the home and a Reverse Mortgage can be used to purchase a primary home.

Seven Things Seniors Should Know About  Reverse Mortgages

1.  How Do I Qualify?

be at least 62 years old
occupy the property as your primary residence
pay off any existing liens from proceeds at settlement
attend an informal session with a housing counselor, usually by telephone

2.  Why Would I Want a Reverse Mortgage?

pay off existing debt - be free from monthly debt payments
cash for medical care, travel, home improvements, education, help family members
provide living expenses when savings or social security income are insufficient
use the cash in any way you want
allows borrowers to remain independent

3.  How is a Reverse Mortgage Repaid?

The loan becomes due when you vacate the property due to moving, the sale of the house, or the death of the borrowers
you or your heirs may settle the loan by selling the property or refinancing it

4.  How Much Money can I Get?

Factors that determine the loan are:
your age
the value of your home
current interest rates for the Reverse Mortgage Program
current loan principal limits

5.  Will My Heirs be Affected?

The debt does not pass to heirs
The lender has no claim on assets other than the then current market value of the home upon loan maturity
Guaranteed by the federal government or the proprietary lender

6.  How Do I Get the Money?

Payment options include:
lump sum payment
line of credit - leave in an account for use as you need it
tenure plan - receive a certain amount monthly throughout your life
term plan - receive a certain amount over a specified number of years

7.  Will I Ever Have to Leave My Home?

With a Reverse Mortgage, you must:
occupy the home as your primary residence
pay homeowner's insurance
pay property taxes
maintain your home
If you fulfill these obligations, you can Never be forced from your home.

If you need a referral to a Reverse Mortgage Specialist, call me Rick Giese associate broker & (SRES) Senior Real Estate Specialist at 586.242.3100 or email rick@rickgiese.com  today.

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