How a Reverse Mortgage can Help You Sell More Homes and Double the Size of the Sale

Happy Affectionate Senior Couple Hugging in Front of Sold Real Estate Sign and House.

Say your client is a 69 year old woman that wants to sell her home because it has too many stairs, and she cannot maintain the yard any longer.  It is listed for $199,000 and has a $30,000 HELOC outstanding.

You end up selling it for $195,000.  After about $13,000 in closing costs and paying off the $30,000 HELOC, she only nets out $152,000.  She does not want a new mortgage payment.

You could find her a small condo or townhome for $150,000, but it would not be nearly as nice as she wants.

She sees an ad for the cutest little patio home that is just perfect for her at $275,000.  Unfortunately, her only verifiable income is Social Security and a small pension totaling just  $1,650 per month and she is really not comfortable taking on a new $585 mortgage payment for the next 30 years (the rest of her life).

This is what it would look like if she purchased the home with traditional financing:

Cash out from sale of old home$152,000
Purchase price of new home$275,000
New Mortgage$123,000 (P&I only =$585 at 4.0% interest)
Money left in her pocket$0.00

However, with a reverse mortgage, she could qualify for $146,000 after all loan costs on the patio home.  This means she would only have to bring $129,000 to the closing and not have to worry about making any mortgage payments, plus she keeps over $23,000 in her bank account from the sale of her old home! 

This is what a Reverse Mortgage for Purchase would look like:

Net cash out from her old home$152,000
Purchase price of new home$275,000
New reverse mortgage loan-$146,000
Cash required for down payment$129,000
Money left in her pocket$23,000 ($152,000 – $129,000)

This is a win, win, deal.  You win because you were the one that introduced her to the idea of using a reverse mortgage, plus you were able to sell a larger, more expensive home.  The client definitely wins because she gets to own and live in the house of her dreams for the rest of her life, enhancing her retirement years!

Please note that the numbers above are based on interest rates and loan programs effective as of January of 2016.   The programs and interest rates can change affecting these numbers.  This is for illustration purposes only.

Please contact me for more information or with any questions about our reverse mortgage for purchase program.

I teach a 2 hour C/E class through Williams Title every other month and am also available to come to your office and teach the class for groups of five or more.

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John Addante
John Addante

Left us a 5 star review

My wife and I are retired and had a mortgage that was quite high. We contacted Bruce regarding a Reverse Mortgage and were pleased with his knowledge and experience. He made the whole process very easy and explained everything along the way. Since then, I have had a couple of questions and contacted him regarding the RM. Bruce has always been very responsive and returned our calls within minutes. We couldn't be happier having used Bruce for the Reverse Mortgage and highly recommend him.

Bruce has been serving my interest over and above what one might expect during the whole process of handling my reverse mortgage dating back to 2010 and continues to be available at present whenever a question may arise. He is one of the most reliable, trustworthy and knowledgeable experts regarding reverse mortgages that I have had the privilege to do business with! I would highly recommend Bruce to anyone who is considering a reverse mortgage. Thank you Bruce!

I met Bruce from a referral who just love what he did for them on their Reverse Mortgage, So I contacted Bruce and told him my story and he came up with a great Reverse Mortgage for me and my needs and now I am living good and not worrying about Finances anymore. He had it done in a timely manner. If you are looking for the MAN to help you get the best Reverse Mortgage you need to call him and hope you let him help you.

Bruce is one of the most professional, knowledgeable and efficient experts I have worked ŵith ever in any field. He is fast to answer and always ready to help...and he's a great guy!

I was hesitate about getting a reverse mortgage until Bruce Simons put my mind at rest. He is easy to work with, extremely knowledgeable and efficient. Things get done and he will make sure that you understand every part of the process. I interviewed several other people and he was hands down.....The only choice.

Doing a Reverse Mortgage is a major decision, when working with Bruce he came out personally to go over every thing in detail, there was no pressure to finalize the transaction, I had even put the loan on hold for awhile even though I had locked in my rate, I had called Bruce off and on for a few weeks to ask questions that I had concerns about and he was always available to talk to me. In the end it gave me time to feel comfortable about my decision to move forward with the Reverse. Bruce was very pleasant to work with and would certainly recommend Bruce if you are going to consider a Reverse Mortgage.

Bruce Simmons at American Liberty is one of the best in the reverse mortgage industry. I have known and worked with him for years and he always does a great job. You are in good hands with Bruce and know that he will take good care of you or your loved ones every step of the way.

Best thing I ever did! Bruce Simmons at American Liberty Mortgage is the best. He is always there to answer your questions, and can easily explain the whole idea of a Reverse Mortgage. He takes the time and goes through the entire process with you. It worked out so well for me. Thank You Bruce!

We had researched Reverse Mortgages for 5 years and after hearing about Bruce Simmons and meeting with him, we finally decided to move forward with the Reverse Morgage. It has been over a year now and we are still very pleased with our decision. We think Bruce is very professional, knowledgeable and honest. Thank you, Bruce, for all your help.

I first met Bruce Simmons 2017. I found him on the internet. I was looking for someone local. I called him and explained I was only looking into doing a reverse mortgage, so I did not want him to think this was something I was ready to do. Bruce was friendly, very open about the basics of a reverse mortgage. Bruce came to my home and presented the figures and other details that he could offer. The first thing that impressed me was this was not a hard sell, more of a informational meeting. He was very open about all of the details, and answered my questions without hesitation. What really was evident was he was establishing a relationship with me, and I realized he knew I would not take the loan at that time. There was not enough equity in my home, and I would have to bring money to the table. Although I was not ready to do a loan, Bruce assured me he is always available for questions. Four years later, I finally did do a reverse mortgage, and I couldn't be happier with having done it. I have done away with a mortgage payment which allows me to fund my retirement account with that mortgage payment. We did some much needed landscaping with our cash out transaction, and will move on to improvements inside of the house. My reverse mortgage has a line of credit, and I feel sense security knowing it is there if I need it. Bruce explained that a reverse mortgage is not for everyone, but I feel certain that he paved the way for a strategy that worked for me. I will definitely do a refinance when the time is right. I will check in with Bruce to be sure what the benefits are when I do it again.

I have worked with Bruce Simmons for 15 years. Bruce is one of the best in the industry. He is extremely knowledgeable, kinds and detailed in what he does. His clients love working with him and trust him to help them with their Reverse Mortgage loans. I would recommend Bruce to anyone I know that is thinking about or wanting to do a Reverse Mortgage. He will always take very good care of the customers and make sure their needs are met! Class act and one of the best in the industry by far!