Reverse Your Thinking About Your Mortgage

Let Your Home Take Care of You

The dining room window that catches the late afternoon sun, the cozy kitchen filled with the aroma of fresh baked cookies and even that special doorway where you lovingly marked the growth of your children and grand-children; this is the Michigan home that you have taken care of over the years and is full of so many good memories. Isn't it time to let your home take care of you?

Your Home is a Resource for Your Needs

Your home can be your most valuable asset - not just for the memories you have made but also for the equity and value that you have built up over the years. Whether it is repainting that cozy kitchen, paying off debt or financing healthcare needs, we can show you how the equity in your home can be a resource to meet those needs.

How Reverse Mortgages work

A reverse mortgage is a loan against the equity in the home that provides tax-free cash advances, but requires no payments during the term of the loan. Since there are no monthly payments during the life of the loan, the balance grows larger and the equity gets smaller.

The loan is not due and payable until the borrower no longer occupies the home as a principal residence. This happens when the last surviving borrower sells, moves out permanently or passes away.

You must be at least 62 and own your own home or condominium in order to qualify for a reverse mortgage. There are no income or credit requirements to qualify. Based on the amount of benefit, which you qualify for, you may be eligible for a reverse mortgage even if you still owe money on your first mortgage.

Taxes and Social security

Payments received from a reverse mortgage are considered to be a loan, not income. Therefore, funds received are NOT subject to income tax and do not affect Social Security Benefits. Those receiving Medicaid or SSI may not be affected if the funds from the reverse are spent in the month they are received. We recommend, however, that you consult your own tax advisor for further details.

And the interest is tax deductible. The interest accrues and is deductible when the loan balance and interest is repaid, when the borrower permanently leaves the property. For your specific situation, we recommend that you consult your tax advisor.

Have More Questions?

Read through our comprehensive list of Frequently Asked Michigan Reverse Mortgage Questions.

We Can Help You

Birmingham Bancorp Mortgage has been a leading lender in Michigan for over three decades. Our success can be directly attributed to our ability to tailor loan programs to meet the individual needs and goals of our clients. That's our specialty! Combined with first-class customer service, Birmingham Bancorp Mortgage can and will deliver the right mortgage for you.

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