REVERSE MORTGAGES: simple but powerful

By
Mortgage and Lending with Christensen Financial Mortgage 385907

let's just look at what everybody knows, well maybe everybody knows, or hopefully everybody know, or maybe somebody knows.

 

a Reverse Mortgage does not require the buyer (purchase) or the homeowner (refi) to make a monthly payment!

 

So let's say the required principle and interest payment is $1,000 a month currently, and the senior acquires a reverse mortgage. the required payment is now...

 

$0.00

 

simple math; that's $12,000 per year, $60,000 every five years, and $120,000 every 10 years

 

the obvious is that that will change the seniors financial position immediately. so what to do with the $$$$

it's their choice; investment, add to the retirement nest egg, improved live style (yes they should be enjoying their retirement/senior years), protection against tramatic life events, home health care; the list goes on, and on, and on.

 

so, here's a personal example; i didn't plan on having a second heart attack, but i did anyway. that's the way it works. just because you don't plan on something happening doesn't prevent it from happening. i was/am on 100% commission, and that came to an abrupt end. i did have a mortgage payment, and that didn't (come to an abrupt end.) My expenses actually increased as my income decreased, and vanished.

 

it would have been nice not to have had to make a payment.

 

 

 

Comments (2)

William Feela
WHISPERING PINES REALTY - North Branch, MN
Realtor, Whispering Pines Realty 651-674-5999 No.

I have it seen a really good program of this.  I know my parents did one without telling me and costs were over 25 percent of the homes value

Nov 07, 2018 11:22 AM
Jay Beckingham

i don't know who did that for them (or to them) or when, but there's no excuse for that...but i've never heard of costs that high before...how long ago was that?

Nov 07, 2018 04:49 PM
Joe Pryor
The Virtual Real Estate Team - Oklahoma City, OK
REALTOR® - Oklahoma Investment Properties

I have never been big on reverse mortgages but I have an investor who is older doing one to use funds to invest in rental houses.

Nov 07, 2018 02:28 PM

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