Guides – Reverse Mortgages of Michigan https://reversemortgagesmichigan.com Reverse Mortgage Lender - Farmington Hills, MI Fri, 26 Apr 2024 19:12:44 +0000 en-US hourly 1 https://wordpress.org/?v=6.9.4 https://reversemortgagesmichigan.com/wp-content/uploads/2024/05/favicon426.jpg Guides – Reverse Mortgages of Michigan https://reversemortgagesmichigan.com 32 32 The Truth about Reverse Mortgages https://reversemortgagesmichigan.com/the-truth-about-reverse-mortgages/ https://reversemortgagesmichigan.com/the-truth-about-reverse-mortgages/#respond Thu, 25 Apr 2024 18:59:04 +0000 https://reversemortgagesmichigan.com/?p=28217 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?

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The Truth about Reverse Mortgages

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.

David Blatt
Reverse Mortgages of Michigan
1-800-318-8000
davidjblatt@gmail.com

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]]> https://reversemortgagesmichigan.com/the-truth-about-reverse-mortgages/feed/ 0 What is a HECM Loan? https://reversemortgagesmichigan.com/what-is-a-hecm-loan/ https://reversemortgagesmichigan.com/what-is-a-hecm-loan/#respond Tue, 02 Apr 2024 18:56:06 +0000 https://reversemortgagesmichigan.com/?p=28205 Are you a senior homeowner that feels your home no longer fits your needs?

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What is a HECM Loan? 

Are you a senior homeowner that feels your home no longer fits your needs? You don’t need the additional family space anymore, and maintaining a large home is expensive and can be a drain on your time and resources. It might be time to downsize and move into a one-story home or to a neighborhood closer to your family. The problem is that although your home has increased in value over the years, selling your current home may not cover the purchase price of a new one.

A reverse mortgage loan program designed specifically to help baby boomers aged 62 and older can help bridge that gap. A Home Equity Conversion for Purchase loan or H4P, is a safe, FHA federally insured loan program that helps seniors purchase a home more suited to their retirement lifestyle. It will allow you to make a one-time payment of 50 to 65% of the purchase price of a new home, while eliminating your monthly mortgage payments…for life. You will still be responsible for maintaining the home and paying any property taxes, home insurance, and HOA fees. But you don’t have to repay the loan until you sell your current home, or you no longer live there as a primary residence.

For many senior homeowners, this is a better option than paying cash for a new home or taking out a mortgage in retirement. H4P also effectively doubles your purchasing power, by allowing you to afford the home you want now while leaving enough cash left over to fund your retirement. To find out more about the H4P program, call us today.

David Blatt
Reverse Mortgages of Michigan
1-800-318-8000
davidjblatt@gmail.com

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]]> https://reversemortgagesmichigan.com/what-is-a-hecm-loan/feed/ 0 Reverse vs Traditional Mortgages https://reversemortgagesmichigan.com/reverse-vs-traditional-mortgages/ https://reversemortgagesmichigan.com/reverse-vs-traditional-mortgages/#respond Wed, 15 Nov 2023 18:25:52 +0000 https://reversemortgagesmichigan.com/?p=28108 One of the most frequently asked questions about reverse mortgages is, “How does it differ from a traditional mortgage?”

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Reverse vs Traditional Mortgages 

One of the most frequently asked questions about reverse mortgages is, “How does it differ from a traditional mortgage?”?

With a traditional mortgage, you make your payments each month, slowly chipping away at the loan balance a little bit at a time. But with a reverse mortgage, monthly principal and interest payments are not required, so the balance goes up over time.

To better understand how a reverse mortgage works, let’s look at a typical scenario. Bob takes out a reverse mortgage for 50%?or less?of the value of his home, and in the process gains home appreciation averaging 3-4%. That means that his home equity is increasing … even though he’s not making monthly principal and interest payments. The value of his home may be growing faster than his loan balance… turning home equity into retirement cash flow for Bob to use to help fund his retirement while still allowing him to leave a family legacy to his heirs. He can use those funds to renovate his home, fund a grandchild’s education, purchase a new car, or improve his retirement lifestyle.

To find out more about how a reverse mortgage can benefit you and your family, call us today!

David Blatt
Reverse Mortgages of Michigan
1-800-318-8000
davidjblatt@gmail.com

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