Saline Real Estate and Homes for Sale

It's not often, but occasionally I'm asked about a Reverse Mortgage on your Saline home.  (Original article by Vance Shutes).  Let's take a look at that subject today.

You've paid for your home over the years, and now the mortgage is paid off.  You're in need of a few extra dollars each month, so wouldn't it be nice if your home started paying you back?  One of the ways to accomplish that would be with a Reverse Mortgage on your Saline home. 

Reverse Mortgages can be a source of welcome income for those seniors needing extra money each month.  For those with health or financial challenges they can be a real blessing.  For those who want to remain in their home with additional help or care, reverse mortgages can offer answers and solutions.

There are many factors which you are required to meet in order to qualify for a Reverse Mortgage.  At a minimum, both you and your spouse must be at least age 62.  You must own your Saline home either outright, or have a mortgage with so low of a balance that it can be paid off with proceeds from your reverse mortgage, with money from your savings, or with help from a family member or friend. 

The amount you can borrow against your Saline home depends on your age, prevailing interest rates, and the appraised value of your home.  In general, the more valuable your home, and the older you are, the lower the interest rate and the more you can borrow.

In comparison with a traditional home equity loan or line of credit, a reverse mortgage doesn't require that you make payments.  A reverse mortgage isn't repaid until you "no longer live there" (in other words, you either move out voluntarily, or you die).  In either case, the lender is repaid by selling the home and keeping the proceeds.  Meanwhile, you continue to live in your Saline home and continue to pay the taxes and insurance on the home.

A Reverse Mortgage is not without expense, and they typically are more costly to secure than other mortgages.  For seniors wishing the best and broadest options, or with few other monetary options or avenues for funds, they can provide a much-needed relief to mounting health costs and more.

Make no mistake, with a Reverse Mortgage, you are a borrower.  You are charged interest only on the proceeds you receive.  Most reverse mortgages charge a variable interest rate, as you would with an Adjustable Rate Mortgage.  The interest compounds over the life of the loan until repayment occurs.

Choosing a monthly payment plan (as opposed to a lump sum payment) may be an excellent plan for those who want to generate more spendable income to improve their standard of living.  It's a good idea that a loved one, caretaker, trusted counsel, or friend, accompany the senior to any and all appointments with lenders, as well.  This provides support to the senior considering this financial move, but also provides an extra "set of ears" afterwards to discuss options and make decisions without pressure.  When considering any long term loan commitment it is wise to consult your financial advisor and tax consultant to be sure that you make an informed decision.

Perhaps a Reverse Mortgage on your Saline home is right for you, or perhaps not.

If you have questions about your specific situation, or if you're considering buying or selling your Saline real estate, you owe it to yourself to take advantage of my experience in the Saline market.  I'd be happy to meet with you!  Just give me a call at (734) 476-2063, or send an e-mail, "Vance (at) SalineMichiganRealEstate (dot) com".

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