Most of us understand in some degree or another the value of a reverse mortgage. Let me describe a real situation that is maybe not so apparent.
An older buyer calls me and wants to relocate here. They are selling their home and are going to get about 175,000 for it. They own the home clear as they have been in it for 30 years. Factoring in moving expenses and new furniture they tell me they do not want to spend more than 150,000 for a home. They want to pay all cash so they live mortgage free.
Now they have requirements, and homes that are perfect for them are around 185000-200,000. So I say let's do a REVERSE MORTGAGE. Put 50 % down ( 92,500-100,000) and you will be living free of a mortgage and have a lot more left over !!!! Now they have to go to class and learn all about this but think about using the reverse mortgage to PURCHASE a home not just refinance one. Your buyers could walk into a better home and have a nest egg left over. And they will thank and love you .
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Charlie Ragonesi All Mountain Realty Big Canoe and Mountain Blog
On line at www.allmountainrealty.com Call at 706 579 1098
That's being creative, Charlie, and I'm sure your buyers appreciate it. Hope it works for you.
Good information. Agents need to understand how to use reverse mortgages to meet the needs of their clients. Many seniors can actually upgrade their housing without facing monthly payments.
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Reverse mortgages are great products if used right. When older people have asked me about them I have told them to use them if they need the money, but if they do not need the money then to keep all the equity in their home for when they might need it for assisted living, medical bills, or other issues.
Sounds like a great idea if you need the money now; if not save it for later on you may need it.