A reverse mortgage is, when a home owner 62 or older, borrows against the equity in their home. They can receive a lump sum or monthly payments.
As Grosse Pointers head into their golden years they find themselves cash poor and/or house rich. If you find yourself with a Grosse Pointe home that is paid for and you have debt or insufficient savings a reverse mortgage might be the right choice. However, it might not be.
A Grosse Pointe home owner, who takes out a reverse mortgage, will not net out as much as one who sells their home out right. There are limits to how much can be borrowed and a Grosse Pointe home owner who chooses a reverse mortgage could end up with equity drained by interest and payouts. It is important to weigh the pros and cons between a reverse mortgage and selling your home outright and a good way to do that is to consult with a Grosse Pointe Realtor about the option of selling your home as opposed to a reverse mortgage.
A reverse mortgage can be more profitable to a banker than to you because of the high upfront fees which come out of your equity, closing costs can be higher with a reverse mortgage in comparison to a regular mortgage and borrowers continue to be responsible for real estate taxes, conventional homeowners insurance and home repairs, as well as the added burden of paying for mortgage insurance. A reverse mortgage can also interfere with Medicaid which counts loan proceeds as an asset.
Bottom line is that it is important to talk with the right person or people and make the right decision for you based on your needs. As a Realtor I would be happy to speak with you about the option of selling your home and the pros and cons of doing so in today's market. I look forward to talking with you soon.
http://www.peggykudla.com/
Peggy Kudla Realtor Associate
Sine & Monaghan Real Living
313-884-2338
peggykudla@gmail.com
