The Purchase Reverse Mortgage by Elaine360

new_home_sale_soldWhile most agents are familiar with the scenario above as an important option for helping seniors, many agents are unaware that seniors can also use a reverse mortgage to purchase a new residence. The amount you can borrow is based upon your age, since the payout on the reverse mortgage works much the same as an insurance policy. In other words, the amounts are based upon an actuarial tables rather than the borrower’s ability to repay the loan. Assume that your clients have just sold their big home and have $500,000 in cash. They would like to buy a condo near where their kids and grandkids live; however, they can’t afford to pay the $600,000 it would take to purchase in this area. Here’s how a purchase reverse mortgage would make this work:

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DRE #00598428
Senior Director, Coldwell Banker New Homes Division
With over 200 condominium, townhome and loft projects successfully marketed

“Fewer properties for sale with such remarkably low interest rates make it a great time to sell but a more difficult time to buy”