QUAD CITIES REAL ESTATE WITH RE/MAX

SERVING THE ENTIRE IOWA AND ILLINOIS QUAD CITIES ............................................................

DAVENPORT - BETTENDORF - ROCK ISLAND - MOLINE AND SURROUNDING COMMUNITIES

TOM & CYNDEE BROWNER - CRS, ABR, GRI

BROKER ASSOCIATES SERVING IOWA & ILLINOIS - 319-332-9900 EXT 225

WANT TO SELL YOUR HOME FOR THE MOST MONEY, IN THE SHORTEST TIME, WITH THE LEAST INCONVENIENCE TO YOU? Do you want serious advertising and effort from your agent? Call or contact us for a FREE MARKET ANALYSIS of your present home. No obligation, of course. Call us on our private line at 332-1130 RE/MAX RIVER CITIES, or Contact us at tom&cyndee@quadcitiesrealestate.com LOOKING TO BUY? Check out the services an ACCREDITED BUYER'S REPRESENTATIVE can mean to you.

THE MORTGAGE IS PAID, BUT I NEED THE MONEY

Many seniors as they grow older find that they need money for medial bills or perhaps just to live on. Their homes are paid off and they have gone up in value over the years. The problem is that most seniors believe that they must sell their home to recover the equity that they need. After all you can't take a living room door to the grocery store or doctor's office to pay the bill. In recent years there have been some banks that have begun to assist seniors to not only stay in their home, but to have access to the equity at the same time. It is like a reverse equity mortgage or loan, where the bank makes monthly payments to you.

A typical situation is that the bank demands an appraisal on your property and agrees to pay you up to 80 percent of this current market value less interest. Lets say that your home is worth $100,000. The bank talks to you and it is decided that since you are now 70 years of age that you will be able to take $80,000 minus interest over the next 20 years in monthly payments to you. Current interest rates are 8.5%. So each month you receive x dollars less interest to live on. Meanwhile you continue to live in your home and it continues to appreciate. If you pass, there is some appreciation and 20% plus in value for the bank. The bank sells off the property and recoups their principle loan to you. Your heirs still divide any positive balance left after the bank loan is paid less selling expenses, taxes, attorney etc. By the time you are 90, the home will have gone up and you can again negotiate this gain as a loan back over time, still leaving the 20% equity on the table to protect the bank from loss. Meanwhile, you can stay in the home. If things change and you need to move, you can sell off the home, repay the bank and take the balance to your new location.

For many seniors, social security and small pensions are hard to live on. but with an extra few hundred a month from the home equity, things can be a lot better. If you want to stay in your home, but need money, you may want to look into this option.

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