A Reverse Mortgage for home purchase presentation that I made yesterday to a group of Prudential RE agents really got their attention. I showed them examples of how much a senior buyer could put down on a specific property and then make no payments. These Realtors recognized that they may be able to up- sell someone who had been thinking that they had to pay all cash for their retirement home. Seniors, as a rule, do not like to make principle and interest payments if they don't have to.
There were around 20 agents in attendance and 6 had me prepare flyers for them immediately for this weekend's open houses. One of the requests came from a Realtor who had a listing for a nice 2 bedroom 2 bath ground floor condo in San Diego selling for $229,000. My calculations included in the flyer showed that a 62 year old would have to put approximately $106,000 down while a 75 year old would put around $85,000. At either age, there would be no monthly payments for the borrower for the rest of their lives.
When I put together open house flyers, I present the calculations at various ages and include the agent's picture and contact information. I also include several pictures of the home that is being shown along with the listing price and address prominently displayed. If someone would like to do the calculations on a specific home that is for sale, one can go to my web site at www.homeloans.com/ken-keranen and click on the Reverse Mortgage Calculator. There you will find out how much a senior is eligible for based on the borrower's date of birth and property value (any zip code now works). After you hit the calculate button you will find out approximately the amount of proceeds available from the reverse mortgage. You take the selling price and subtract this figure and the result is the down payment. For a more exact figure, you can fill in the request information on the web site above or to www.reversemortgageforhomepurchase.com and fill in the request form.
I will be delivering the flyers to the agents tomorrow and hope that they have good open house showings this weekend. If nothing else, these flyers make good conversation pieces and open up to seniors a new financing method that they had not heretofore thought about.
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