Here are some things to think about when talking to folks about a reverse mortgage. These things can HELP you in your efforts to find folks a home and add value to your service.
Quickly, remember must be 62 years old or older. Must have equity in the home. Currently pretty much FHA is the only one doing these today. You can never owe more than the value of the home So here goes;
1 A reverse mortgage can be used on a primary residence. A person is behind in their payments. Or they are all paid up and living on a fixed income. If that income is not adequate for repairs and living in general a reverse mortgage can supply needed funds.
2 A person moving to be closer to family or into any type of 55 plus community can use a reverse mortgage.
Buyer Bob has sold his house and wants to be closer to the grown children. He has been in the house for 35 years and is a widower. He is totally paid on his mortgage and is walking out with 225k in cash from the sale of his home. Problem is all the 55 plus communities near his children have homes starting at 250k. Bob does not want a mortgage. So Bob can either buy something for less money OR do a reverse mortgage. If Bob is 75 then the equity on 250k home would be about 140k today. Bob only needs 110K of his walking away money, plus closing costs, to buy this home. He WILL NEVER HAVE A PAYMENT. What this means for Bob is he bought a house that he would not normally have been able to buy without a mortgage, AND he did not use his entire nest egg. So he has money left over to be independent with. Have you made Bob happy ?
3 Buyer Bob and Wife Susie would love a second home in the Mountains. But they cannot afford a Mortgage. They love there home of 30 years . What can a reverse mortgage do for them ?
Bob and Susie have their eye on a 150k cabin in the mountains. Their home is worth 250K. They are all paid up. They take a reverse mortgage for 150k in equity. They buy the cabin for cash. They still do not have a mortgage payment on their primary home. Nor do they have a mortgage on their vacation home since they paid cash. They now own 2 homes mortgage free. Yes that's right If you are in a vacation or retirement destination it is important to know this
These are 3 examples, 2 of which can boost your business using a reverse mortgage. You can also provide high quality service to your clients. Call us at All Mountain Realty here in the North Georgia Mountains. We are your Real Estate professionals
