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Reverse Mortgage Purchase: Is It Right For You?

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A Reverse Mortgage Purchase  is a reverse mortgage loan program that can assist senior homeowners with buying a new house and obtain a reverse mortgage in one transaction, which will eliminate the need for a second closing. It  allows seniors to finance a portion of their new home with the reverse mortgage.   If a senior is looking to downsize their home, or to move closer to family, they can use this loan program to buy a new primary residence.

Is HECM Purchase a right choice for you?

A Reverse Mortgage Purchase can help those who are 62 years and older finance a new home that they are able to age in comfortably with the benefit of not having to make monthly mortgage payments.

While the regular reverse mortgage program is meant to allow seniors to continue to age in place in their current homes, others may find that they need to buy a new house for different reasons. Here are some things to consider when doing a reverse mortgage purchase:

1. Do you want/need to be closer to friends or family?

With the kids out of the house, do you find that you need or want to be closer to friends and family? Some families choose to live near each other, so they can support and take care of each other, such as a grandparent offering to be a trusted and reliable babysitter for their grandchildren. If you and your family/friends discussed the importance of living near each other (for health reasons, support, etc.), a reverse mortgage purchase can help you find an ideal location near your loved ones.

2. Are you looking to downsize?

Some seniors may find that their home is too much for them to handle, whether it is just you and your spouse or just you – you may find that you don’t really need all that extra space. Finding a home that is cozier and easier to maintain would be a better option for you. With no monthly mortgage payments to make – you are able to continue to live comfortably in your new place. Other perks of downsizing may be that you may find that you are able to save in the cost of your utilities and see a reduction in property tax.

3. Do you have everything that you need in your neighborhood?

As you get older, some retirees may find importance in convenience, such as having their doctors, pharmacists, grocery stores, etc. located nearby. A reverse mortgage purchase may also be used to purchase homes in senior communities for independent living. Many senior communities offer special amenities that you may find useful, such as transportation, and opportunities to participate in daily social activities. More often, these retirement communities tend to be located to medical centers and shopping areas for your convenience.

4. Is your home ready for you?

As you get older, your body may change but is your home ready for those changes? While in your younger years, your home may have been comfortable for you, but as your body ages, your needs may change. Seniors should make sure that their homes are safe and convenient for them so that they are able to continue to age comfortably in place. This includes being aware of the wears and tears to the home, as well, as thinking about whether or not the design of the home is still accessible as you age. However, if you would prefer to renovate your home to better fit your needs, borrowers are able to simply do a reverse mortgage, as it can allow them to spend the money in anyway they need, including adding fixtures to the shower and other household amenities to help you age in place.

If you are interested in learning more about the Reverse Mortgage Purchase product, contact a Senior Advisor today at 1-888-808-8486.

Image courtesy of [ddpavumba] / FreeDigitalPhotos.net

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