Michael H DeLap OF5, MST Investment Advisor Rep Registered Principal Business I finance Financial/Itrietttlferitirielirement Planning Money Managed Accounts — Tax Advantaged Investing alVITAS 111•111111111111111101.11L /4 4144-, 114 Reverse Mortgages FINRAT81150 Registered Invettrbent Advitor * Registered Broker/Deal e r Clearing Cirrus: Sear Stearns and Perehing lic 33045 Hamilton Court E., Ste 105 Ferrbingtbn Hills, MI 48334 7 \WO Square Lake Road 810Ortifitid Hills, MI 48302 Phone (248) 363-2548 • (800) 863-1778 • Fax: (248) 363-8989 mdelap@equitasusa.com itiOMPLUTER CONFUSION? • Computer Repairs - Upgrades - Replacements • Infections Treated Antivirus - CounterSpy • Cable/DSL Internet Connection Sharing • EBAY, Yahoo, Stocks and AOL • Computer Purchase Consulting • Training and Installation • Wireless and Wired Networking Help iPod and iTunes Support The Computer Person, LLC •248-655-9010 support@thecomputerperson.net 134186) THE GALLERY RESTAURANT Enjoy gracious dining amid a beautiful atmosphere of casual elegance BREAKFAST • LUNCH • DINNER OPEN 7 DAYS: MON. SAT. 7 a.m.- 9:30 p.m. SUN. 8 a.m.- 9 p.m. Bloomfield Plaza • 6638 Telegraph Road and Maple • 248-851-0313 - 1326870 A36 January 10 • 2008 Truths and explanations aid senior homeowners. I s this for real? It maintained in reasonable liv- seems too good to ing condition. be true! • The size of the reverse One cannot pick up a mortgage depends on the newspaper without read- applicant's age(s), the pro- ing all the bad news in gram selected, the home's today's mortgage busi- value, prevailing interest rates, ness. And in these trying program lending limits and financial times, senior- current interest rates. David B Iatt aged homeowners are • There are no income or Colum nist often required to look to credit qualifications. their home's equity to address finan- • Reverse mortgages convert home cial needs and problems. But there is equity into cash. As long as there is very good news, especially for seniors. sufficient equity in the property, hom- A reverse mortgage is a unique loan eowners may be eligible for a reverse that enables senior homeowners to mortgage. convert part of the equity they have • Many seniors use a reverse mort- accumulated in their homes over the gage to pay off an existing mortgage in years into income without having to order to eliminate monthly mortgage sell the home, give up title or take on payments. new monthly mortgage payments. •When a reverse mortgage becomes This special, safe, government-backed due, the borrower can never owe more program is available to assist seniors, than the value of the home upon their adult children, or their advisers. repayment, regardless of the loan Reverse mortgages are available to balance. Most reverse mortgages are individuals 62 or older who own their insured by FHA, an arm of the U.S. homes, even if there is an existing first Department of Housing and Urban or second mortgage. Funds obtained Development. from the reverse mortgage are, in • All seniors applying for a reverse most instances, tax-free. Borrowers mortgage have a safety net. As part of can choose to receive reverse mort- the application process, a third-party gage funds as a lump sum, monthly non-profit, HUD-approved financial income, line of credit or a combina- counselor is assigned to meet with the tion. Borrowers can use the funds any borrower to insure that clients fully way they wish to improve their quality understand the program before pro- of life. ceeding. By converting equity into income, •A reverse mortgage will generally a reverse mortgage is a way for not affect regular Social Security pay- seniors to stay in their home and ments or Medicare benefits. receive cash, to use generally for any • The cash proceeds from a reverse purpose, whether it is for day-to-day mortgage are most often tax free, living expenses, home remodeling, because it is already the homeowner's repair, paying off existing debt, in- money. home health care costs or traveling As with any financial decision, the world. Best of all, the homeowner seniors are encouraged to talk with retains title and remains living in the their children, financial advisers and home! CPAs regarding their interest in a So are reverse mortgages really too reverse mortgage. ❑ good to be true? Let's explore some important facts. David Blatt is president of Blatt Financial • With a reverse mortgage, the in Bingham Farms and previous president and principal of First Alliance Mortgage borrower retains title to the home throughout the life of the reverse Company. He has an extensive background in all aspects of residential and commer- mortgage. The borrower cannot, as cial mortgage lending. He can be reached a result of the reverse mortgage, be at (248) 433-9626 or forced out of his or her home, as long as property charges, such as taxes and www.blattlending.com. insurance, are paid and the home is