A Good Option for Seniors who Need Cash or Want To Buy a New Home – Reverse Mortgages

Very brief post, call or email me if you would like more info:

Did you know that a person can use a reverse mortgage to buy a home? A person over the age of 62 can buy a home using a reverse mortgage and never have to worry about making a payment and qualifying is easier than a conventional mortgage. Loans amounts are just based on the age of the borrower and value of the home.  Below is a sample of how it could work.

Current Home
$600,000 Value
$300,000 Current Loan
$300,000 Gross Equity
$36,000 Closing Costs (6%)
$264,000 Net Equity
Purchase
$400,000 Value
$248,000 Reverse Mortgage Loan Amount
$152,000 Down Payment
Net Benefit
$264,000 Net Equity
$152,000 Down Payment
$112,000 Cash Remaining