When you mention reverse mortgage people sometimes frown and look away as if something smells bad. I believe it is because they do not understand the value of a reverse mortgage as a financial tool. I have in my Real Estate practice helped several people obtain what is called a reverse purchase loan. In every instance it was a win win for my client. They were able to move into a very nice home that fit their needs keep some cash in their bank account and never have a house payment again. They were then able to go on and travel and enjoy life as they had not been able to do before.
I recently obtained a reverse purchase loan for myself and my husband and am enjoying the benefits of no house payment, more cash in the bank at my disposal and less stress. I sold my home and took the equity in it and used a portion of that money to pay down on a smaller home in my same neighborhood with approximately 40% down I was able to move in and never have a payment again plus put some monies in the bank for a rainy day.
I still hold title in my name and if I want to sell the home due to unforeseen circumstances in the future I am able to do so. The loan is government insured so if I out live my equity there is no cost to me or my heirs. If there is equity left when I pass then my heirs have one year to sell or refinance the home. This has truly been a great program for me and I highly recommend it for anyone who qualifies.
Comments(0)