A reverse mortgage can be a great tool in purchasing a home. If or when it is time to consider moving to a home more lifestyle-friendly for senior living, a reverse mortgage can be a great option. Benefits to purchase using a reverse mortgage include:
No mortgage payment and possibly keep considerable equity from the sale of the current family home.
Increased purchase power allowing for upgrades to modern home Rising Colorado property values make newer home affordability a challenge for a senior wanting/ needing no mortgage payment.
The reverse mortgage can be structured as either a fixed-rate loan or it can be structured as an adjustable-rate with the ability to have the line of credit available.
Some highly recommended resources all individuals considering a reverse mortgage include several books:
• Reverse Mortgages: How to use Reverse Mortgages to Secure Your Retirement by Wade D. Pfau Ph.D.
• Retirement: Rewiring the Way We Think about Retirement by Jamie P. Hopkins
Teri Evans
HUD (Housing/Urban Development) is the agency that oversees FHA Reverse Mortgages. Visit HUD’s Reverse Mortgage program at www.hud.gov/program_offices/housing/sfh/hecm/hecmhome. Beware of using ONLY sites by HUD for information purposes only. All other nonHUD sites are very sales focused.
Local education and a local lender is key to this more complicated financial tool. Please call me at 970-988-9220 or email me at teri@terievans.com to learn more about reverse mortgages.
~ Teri Evans is a Reverse Mortgage Specialist for the Premier Mortgage Group in Fort Collins.