The Reverse Mortgage For Purchase Money Page

Alice has fallen in love with a new patio home she knows she can’t afford. With a reverse mortgage loan, Alice can have this home and even have money left in her pocket.
The Reverse Mortgage For Purchase Money Page

69-year-old Alice decides to sell her home and downsize. She sells her home for $325,000 and after $18,000 in closing costs and paying off a $30,000
HELOC balance has $277,000 remaining. However, she has fallen in love with a new patio home for $400,000. She knows she can’t afford it because
she cannot afford a new mortgage payment plus the HOA dues on her SS and pension of $1,850 per month. But what if she didn’t have a mortgage
payment*?…

CONVENTIONAL FINANCING
CASH OUT FROM SALE OF OLD HOME $277,000
PURCHASE PRICE OF NEW HOME $400,000
NEW MORTGAGE $123,000
(P&I ONLY =$658 AT 5.0% INTEREST X 30 YEARS)
MONEY LEFT IN ALICE’S POCKET $0.00
$658 PER MONTH FOR THE REST OF HER LIFE
REVERSE MORTGAGE
CASH OUT FROM SALE OF OLD HOME $277,000
PURCHASE PRICE OF NEW HOME $400,000
NEW REVERSE MORTGAGE LOAN

(AFTER CLOSING COSTS OF LOAN)

$174,000
CASH REQUIRED FOR DOWN PMT $226,000
MONEY LEFT IN ALICE’S POCKET
($277,000-$226,000)
$51,000
 

With a reverse mortgage loan, Alice can have the perfect home and even have money left in her pocket. Call Bruce Simmons today to learn more at 303-467-7821.

*The homeowner must still pay her property taxes & homeowners insurance and maintain the property This scenario is for illustration purposes
only. Bruce Simmons is a licensed MLO. Colorado License #100036937 / NMLS #409914

The outline you see above compares someone using a regular “forward mortgage” to buy a home to using a “reverse mortgage for purchase” to buy the
same home.

I use this in the 2-hour continuing education class I teach to real estate agents because it paints such a clearpicture of the benefits to the
buyer who wants to get a better home than they otherwise might be able to. The “forward mortgage” leaves the buyer with no cash and a monthly
payment of $658 for the rest of her live. The “reverse Mortgage” loan leaves her with $51,000 left in her pocket and NO MONTHLY MORTGAGE PAYMENT.
Of course she still has to pay her own property taxes and homeowners insurance and maintain the home, but this is case no matte what loan she
gets.

In addition to the benefits for the buyer, the agent also wins because the buyer is able to purchase a more expensive home with a reverse mortgage
than they otherwise could.

The Reverse Mortgage For Purchase, (also called RM4P and H4P), Is a win-win for everyone involved and every real estate agent should know about
it and how it works to better serve their older clients.

Please contact me with any questions.

Bruce Simmons

Bruce Simmons

I absolutely love what I do - working with senior homeowners to help them live a more comfortable, flexible and secure retirement. I have the absolute best customers in the world, and even though I worked in the forward mortgage business for a number of years, I could never go back to doing conventional loans. I'm a 100% reverse mortgage specialist.

Leave a Replay

Recent Posts

Reverse Mortgage Guide

Free Reverse Mortgage Guide

This 28-page Consumer Guide will help you make and informed decision whether a reverse mortgage is right for you.