Kalamazoo Senior Living – Everyone sees those TV commercials featuring sincere celebrities pitching reverse mortgages. If you are 62 or older, chances are you’re also subjected to glossy mailers (and even DVDs!) that show up in your mailbox at regular intervals.
Latest stats show that approximately 83% of baby boomers plan to stay in their Kalamazoo homes during retirement. That may be why some Portage and Kalamazoo homeowners who have built equity in their homes may be paying attention.
You can’t blame them if they have one overriding question — is this some kind of scam?
Essentially, a reverse mortgage is just one way to tap into a Kalamazoo home’s equity regardless of the owner’s credit score or income. Under a reverse mortgage, borrowers receive a monthly payment, line of credit, or lump sum. Although the borrowed amount accrues interest immediately, borrowers don’t need to repay anything until they move or become deceased – at which point they (or their estate) repays the loan plus interest.
Elder law attorney Janet Colliton believes a reverse mortgage can be a useful financial tool for Greater Kalamazoo homeowners aged 70 or older committed to remaining in their homes…if they lack the financial resources needed to comfortably cover their living and medical expense. However, for Kalamazoo homeowners younger than 70 (who can expect a longer retirement), or who would elect to take the cash in a lump sum, there is a clear red flag with a reverse mortgage. In either case, a reverse mortgage increases the risk of running out of cash – and home. Additionally, for Kalamazoo homeowners who have not yet built equity in their home, a reverse mortgage is not available.
If you are starting to consider your retirement plans and would like to survey all of your options, a member of our team is happy to meet to go over the home buying and Home selling alternatives that will work best for you. You won’t know until you can compare the numbers — call us anytime (269-350-5514) to begin the discussion.
Your Kalamazoo Senior Living specialists,
David Veenstra, REALTOR
Jason Veenstra, REALTOR