Right sizing retirement can lead to a secure future for seniors
According to the National Association of Realtors’ 2015 White Paper on Home Buyers and Sellers. 41% of home buyers were seniors and 48% of home sellers were seniors.
It’s not downsizing…it’s right sizing retirement
If you were to ask most real estate and mortgage professionals the number one reason for seniors to move, most would say “downsizing”. But if you were to ask those seniors the same question you would likely get an entirely different answer.
When surveyed, seniors overwhelmingly gave as their number one reason for moving “be closer to family and friends”.
What exactly is right sizing retirement?
Right sizing retirement is more than just a square footage consideration, though it could be. Right sizing could be selling your current home and moving to a senior retirement complex. It could be moving to a larger home to accommodate aging parents or “boomerang” kids. Right sizing retirement could be moving to a senior apartment complex and using the proceeds from your home to supplement your retirement income.
The New Reverse Mortgage has provided the solution for many seniors. regardless of their “right sizing” retirement needs.
What right sizing retirement meant to one family
Steve and Rachel had been “mortgage free” for a number of years in their family home in Gilbert, Arizona. The kids had recently relocated to Southern California and Steve and Rachel wanted to be closer to their family and other California friends.
Unfortunately when they started internet house shopping they soon discovered that the $400,000 proceeds from the sale of their home wouldn’t buy them a comparable one and enable them to remain mortgage payment free. In order to find something comparable they had to migrate (what felt to them) almost halfway back to AZ.
The New Reverse Mortgage for Purchase Program
One of the recent improvements to the Reverse Mortgage program is the HECM for Purchase or H4P program. When not having a mortgage payment is one of your most important considerations, H4P can make that dream a reality.
Realtor recommends H4P
They had just about given up hope, when their Realtor suggested they consider a Reverse Mortgage. Steve and Rachel had heard of Reverse Mortgages but thought they were only for families who wanted to stay in their homes.
After we met with Steve and Rachel they were still skeptical and we recommended they take the required HUD Reverse Mortgage Counseling. That proved to be just what they needed. They learned that most of the information they had heard about Reverse Mortgages was really misinformation and began their house hunting in earnest.
Using the Reverse Mortgage for Purchase program, Steve and Rachel were able to buy a $600,000 home close to family and friends and don’t have a mortgage payment.
Right sizing retirement also meant funding their grandchildren’s college
In addition to being within a few miles of their family, Steve and Rachel took the $100,000 they had remaining from the sale of their Arizona home and set up college funds for their three grandchildren. Something they had been plan for a long time and now were finally able to do it.
The New Reverse Mortgage isn’t for everyone…but it could be!
Is The Reverse Mortgage right for me?
If you’re still wondering if a Reverse Mortgage is the right solution for you but you’re not ready to sit down with one of our Reverse Mortgage Experts, then we’ll be happy to mail (or email) you Use Your Home to Stay at Home which is the official federally approved consumer booklet for those considering a reverse mortgage.