There’s a lot of misinformation out there about reverse mortgages, so let’s separate the facts from the fiction. To qualify for a reverse mortgage, you must?own your home outright or have at least 50% equity, but you don’t have to surrender the title... you retain ownership.
A reverse mortgage is a way for senior homeowners to generate additional cash flow in retirement by tapping into the equity in their home… and it is not necessarily a lifeline for those in financial straits. Interest rates for a reverse mortgage are not high. Depending on the type of reverse mortgage you choose, interest rates are often comparable to those of a traditional mortgage.
With a reverse mortgage, monthly mortgage and interest payments become optional, and the resulting savings gives you additional cash flow to fund a more comfortable lifestyle in retirement. Your heirs will have the option to either sell the home or refinance it and utilize the proceeds to repay the loan when the time for a payoff occurs. In fact, depending on how the value of your home appreciates over time, a reverse mortgage could provide a source of equity to those same heirs if they simply choose to sell it.
To find out the truth about reverse mortgages, call us today.
Reverse Mortgages of Michigan