Reverse Mortgages

Before talking about Reverse Mortgages

I just wanted to say. For the last five years, Deborah Elliott-Shultz has introduced the City of CS show and her real estate company MiaBella Properties. Both of which she owns and operates. But the two names are very different. For several years, she has been hearing from people about confusion between the two names, which is which and remembering both names.


Deborah originally named her real estate business MiaBella Properties because she’s a very international person and Mia Bella means “my pretty” in Spanish and Italian. Even her granddaughter is named Isabella. So, for her, it just made sense. And she had MiaBella Properties before this show went live on the air.  But over the last few months, she began thinking that it might make sense to match the name of her real estate company with her radio show. This way when you hear one, you hear both the show and the real estate company.


After speaking with many people, Deborah came up with an idea. Some really good things are in the mix. But the biggest news is that the name of the show and the real estate company are changing! So it is...drumroll...


City of CS Real Estate and Lifestyle Show. And the real estate company is going to be City of CS Real Estate and Lifestyle.  So when you hear one you can, you'll be able to connect both of them together.  What does that mean? Does that mean there's going to be big changes? Well, it just means that there's gonna be more choices of people interviewed on the show because lifestyle can include so many different things and aspects of life.  Which means there will be more opportunity to hear about a mom-and-pop restaurant, a doctor's office, there's just so many different things you're gonna be able to relate to. There's some specialties out there that you've probably never heard of that weren’t possible to have on the show because they weren’t directly connected to real estate.
So on the website at, there are going to be some really cool things like businesses that have connected with the show, some of which will offer you great specials to save you money. We had a fantastic response to all of the nonprofits on the show from October to the end of December. Many of you gave your end of year donations to the nonprofits. Deborah Elliott-Shultz would like to say thank you for tuning in during that time and for your generosity.


At this time of year, many people are trying to make changes. One of those changes is to stop paying rent and become a homeowner. You don't get any benefit from renting out and often end up paying somebody else's mortgage. But there's a couple questions that people have and some unique questions that people have.


Today, Deborah Elliott-Shultz welcomes Ryan Herbig and Bruce Simmons from American Liberty mortgage. Lending can be a very difficult task to go through and these guys have a lot of the answers.  When qualifying borrowers, lenders have to look at their income, their assets, and job history. So there are quite a few factors.  Rent is so expensive in Colorado Springs, it is outrageous. You can get way more home for the same monthly payment than you would paying for a rental. And really, when you're a renter, you're paying somebody else's mortgage anyways. So would you rather pay somebody else's mortgage or your own?


A lot of people are surprised when they meet with Ryan to get qualified, they don't think they can qualify. But the majority of people today can qualify for a mortgage.  The process itself is really not much different than applying for a rental property. You put earnest money down when you buy home, if you're going to rent a house, you have to put down a security deposit. The security deposit is typically first and last month's rent. So it's about $1500, and if you’re buying a home you're going to put down approximately $3,000. So, to put down a security deposit is approximately 50% of what you would need for a down payment on a home. It's not much more money to actually buy


With that said, home prices in Colorado Springs have shot up and people are going down to Pueblo to buy because real estate is less expensive down there. So, there’s no reason to shy away from buying a home.  What are some of the programs available for homebuyers? For first time homebuyer programs, there are some down payment assistance programs. There are also many types of conventional and FHA loans, among others. To find out about your mortgage options, call Ryan Herbig at 719-228-6055.


You’ve probably heard about reverse home mortgages at some point. You see it on TV all the time. You've got famous people advertising it for national companies, which can have a negative impact consequence because you never know if the online company if reputable. Bruce Simmons is a lender who knows a lot about reverse home mortgages.


What is a reverse mortgage?


Most of the time, it is an FHA insured loan that's specifically designed for people who are 62 and over that allows a portion of the value of your home to convert to tax free money that you never have to repay…as long as you live in your home. It's not free money, you're still charged interest every month, but you don't actually pay it out of your pocket. And you still have to pay your own property taxes and homeowners insurance. You can't forget that. Just like if you own your home free and clear if you don't pay your taxes, right, you're gonna lose your home. And you still have to maintain the home. It's for primary residence only.


But it's still your house.


Some people will use it to pay off an existing mortgage. For instance, you've got a $400,000 home and you still have $150,000 on your mortgage. If you get a reverse mortgage, you can pay off that $150,000 and dependent upon how much you qualify for, then you can you may have some money left over, dependent on your age and the interest rate value of the home. It's a very, very customized loan, there is no set amount.  It really is a financial planning tool. It could just be used to pay off an existing mortgage. If you're drawing money out of your IRA on a monthly basis to pay your mortgage, you should consider a reverse mortgage to get rid of that payment, then you can leave more money under management in your IRA. This way it can continue to grow and hopefully last longer.


So when a person does their will, and they've got kids, can they still leave the house to them? Are they leaving a debt to their kids? One of the biggest misconceptions is that people with a reverse mortgage on their home, the bank's going to take their house when they die. That is absolutely 100% wrong. What happens is, the heirs inherit the home and they decide what to do with it. If they want to keep it, they can actually keep the home they have six months from the date of the last homeowner permanently leaving the home. And then they have up to to 90-day extension. So they can either sell the house or refinance it. If they wanted to refinance it, let's say $200,000 is owed and the house is worth $300,000, they go get a new loan for $200,000 to pay off the reverse mortgage, and now they keep the house the $300,000 home. So any equity that's left is going to go to the estate or the heirs. If they wanted to sell it, they sell it for $300,000 and pay off the remainder, and they inherit the difference.


To find out more information about reverse mortgages, you can visit or call Bruce Simmons at (303) 513-2748.


To ask questions or to look into what it would take to get a home loan, contact Ryan Herbig at (719) 659-0043.


Are you interested in finding out about Deborah Elliott-Shultz and City of CS Real Estate and Lifestyle’s flat listing fee of $3500*? Call (719) 641-1357. And, have you heard about our buyer’s rebate? That’s right! We give back 1/3 of our commission to help you with your closing costs or to buy new appliances which will be reflected on the settlement statement, and you’ll get it at closing along with a W-9.  If you have any real estate questions, or to find out how City of CS Real Estate and Lifestyle can help make your real estate experience more affordable, call Deborah Elliott-Shultz at (719) 641-1357.


*If listed for under $600,000 and does not include the buyer’s agent fee.

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