Many empty nesters are discovering how to right size without compromise when they apply a reverse mortgage to finance their new home.
So, you’ve been thinking about downsizing but to a more manageable home for your retirement years, but you’re concerned that you might have to compromise the size or location of your new home during retirement? Did you know how you can purchase more home with a reverse mortgage? You should not feel embarrassed, your Realtor probably doesn’t know either and she is in the business
Many homeowners that have been dreaming of moving to a new home that is more suitable for them, since they have become empty nesters. They wish to have a home that is easier to manage so they can enjoy their retirement years without the burden of maintaining extra bedrooms and large yards.
These homeowners typically don’t want to start over with a new mortgage payment and plan to find a home they can afford to pay all cash. This usually means they need to tap into their retirement savings, or compromising on either the size or location of the new home. Unfortunately, compromising is not an option they are ready to accept and therefore they usually stay put in their big home.
Recently, Monica and Mark were selling their home in a prestigious zip code in San Diego. They planned on netting $300,000 from their sale and were planning on buying a home for cash.
Unfortunately their Realtor had told them that $300,000 meant a small condominium in San Diego, or a home located over 65 miles away from all their friends and their grandchildren, something they didn’t plan.
Financial Advisors Solution
Fortunately, their financial planner had heard my discussion of reverse mortgage for purchase plan and made the introduction. When I met this couple, they told me they were ready to give up and take their home off the market and just stay put in Encinitas.
Mark told me, “We thought that by selling our home we would be right-sizing.” Then Monica added “But when we saw the homes in our price range, we quickly realized we were not only down-sizing, we were compromising. Something we never had to do before.”
Right-Size Without Compromise®
I showed them how they could qualify for a home of $535,000 with a down payment of about $265,000 with our reverse mortgage loan. This meant that they would still have no mortgage payment and, more importantly, they could stay in San Diego among their friends and grandchildren.
- They qualified to purchase a new home of $535,000
- Their down payment of 45%* from the sale of old home
- They would still have no mortgage payment
- They Right-Size and stay in their area among friends and family
“The home purchase plan was perfect and came just as we were about to give up,” Monica said with great relief. When I met their daughter, Jen “I’m glad my parents had the option of not moving so far away from everyone. Our kids love to visit their Gamma and Poppy on the weekends, and our folks make the perfect babysitters so we can have a night for ourselves.”
Reverse Mortgage for Purchase
At the close of escrow, their Realtor was ecstatic, realizing there was an untapped market of listings and buyers for her firm. “I’ve heard of reverse mortgages before but I never knew you could finance the purchase of a home with one. I know so many people that have been wishing to sell their home, but they were hesitant because that also meant having to compromise. Now I’m able to show them how to right-size, with dignity”
Now you know how you can Right-size without Compromise®. Call me to see how it can work for you!Questions? Contact us now!