A reverse mortgage for home purchase (also known as a home equity conversion mortgage for home purchase) is an attractive option for seniors, typically age 62 or older.
Here are six reasons why you might choose to buy a home using a reverse mortgage.
With a reverse mortgage, homeowners don’t have to make monthly mortgage payments, which can greatly ease the financial burden of seniors on fixed incomes, allowing them to maintain their standard of living without the stress of monthly mortgage payments.
Reverse mortgages can help seniors conserve their cash reserves. Rather than using all of their savings or investment funds to purchase a new home, they can use a reverse mortgage to fund part of the purchase, leaving more money in the account for emergencies, medical care, and other expenses.
Reverse mortgages allow seniors to purchase a home that better suits their needs, such as downsizing to a more manageable property or upgrading to a home with modern amenities or a better location (closer to family and medical facilities, more suitable climate, etc.).
Because reverse mortgages do not require monthly payments, seniors can use the income for other purposes, such as travel, hobbies, and other investments. This financial flexibility improves the quality of life in retirement.
For people who want to purchase a new home but are unsure about their long-term ability to make payments, a reverse mortgage allows them to continue living in their home without worrying about future mortgage payments. This is especially appealing for people who plan to live in their home for the rest of their lives, as it allows them to enjoy their new home without any financial strain.
You retain ownership of your home and can continue to live there for as long as you want.
If you're over 62, a reverse mortgage may be able to help you get your dream home.
JoAnn Moore is a licensed mortgage lender (NMLS #165477) with The Mortgage Market of Delaware LLC in Georgetown. For more information, please call 302-236-1229 or email MMODJoAnn@aol.com.
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