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 homes during retirement. That may be why some Millersville, Maryland 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 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 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 expenses.
However, for Millersville, 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. In either case, a reverse mortgage increases the risk of running out of cash - and home. Additionally, for Millersville, Maryland 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, I am happy to meet to go over the buying and selling alternatives that will work best for you. You won’t know until you’ve run the numbers -- call me anytime 443-790-6918 to begin the discussion.
The G-Team your Maryland Real Estate Connection, is a full-time team with over 22 years of experience. We provide service to our clients in all areas of Maryland. Our areas of specialty include Real Estate in Central Maryland.
We are located in Millersville, Maryland between Baltimore and Annapolis in Anne Arundel County convenient to Fort Meade. We also service Howard, Harford, Carroll & Queen Anne’s Counties and central Maryland. Whether you are BUYING A HOME, SELLING A HOME, RELOCATING or SHORT SALES.
Call us we can HELP.
If you or someone you know is interested in Buying a home, Selling a home or renting a home, CALL US WE CAN HELP! We provide Experience, Integrity and Solutions to help you through the real estate process. Our website www.MarylandHomeSearchSite.com has all the information you need. It is designed to share info about the community, it’s neighborhoods, real estate trends, housing prices and the ability to create your own search for listings.
Call us at (443)790-6918 or email firstname.lastname@example.org or contact.