Are you retired and ready to downsize your home? Or, looking for a new home to be near your children and grandchildren? Perhaps you’ve just sold your home and now have available cash and don’t want to saddle yourself with more mortgage payments. Then the Reverse Mortgage for Purchase may be just what you need!
A recent client, a widow in her 70s, sold her home in Texas and cleared $150,000. She came to Atlanta to buy a home near her daughter and asked her realtor to find her a home for $150,000 because she didn’t want to make mortgage payments. After days of searching, she found nothing she liked in her price range. She was referred to us, Reverse Mortgage specialists, to see if there was a way for her to purchase the home of her dreams. After learning about the Reverse Mortgage, she shopped again and found a perfect house in a neighborhood near her daughter with a price tag of $300,000. With a Reverse Mortgage, she discovered she could purchase the $300,000 home, bring $130,000 to closing, keep the additional $20,000 in her bank account and never make a mortgage payment. Needless to say she is living happily in her dream home.
Perhaps you and your spouse are already living in your dream home and plan to stay there the rest of your life. You’ve done all the right things and paid your home off, but find your retirement funds have dwindled and you’re struggling to live the
comfortable lifestyle for which you prepared. Let’s imagine that you are 77 and 75 years old, that your home value is $300,000, you have a $23,000 mortgage with monthly payments of $825. An example of a Reverse Mortgage refinance in this case might pay off the $23,000 mortgage, eliminate the mortgage payment and provide a monthly check of approximately $1,000 and you would never make a mortgage payment as long as you live in the home.
One of the most common things you’ll hear about Reverse Mortgages is how high the closing costs are. However, changes have occurred in the program and closing costs have been significantly lowered, making this a very competitive option for borrowers who are 62 years or older.
If you would like more information about how a Reverse Mortgage might work for you, contact BonnieBonham at 770-235-5067 or Barbara Klonga at 404-993-0750, Reverse Mortgage Specialists with First Century Bank.