Retire in Your Dream Home with No Monthly Mortgage Payments

This is not as unreasonable as it might sound, indeed it’s absolutely achievable. This was all new to me and I found this information fascinating.

Everybody has a dream for their retirement. Some folks want to downsize and travel more, others would like a larger home maybe to accommodate more family visits. Many seniors prefer the active lifestyle of a 55+ community or the comfort of a warmer climate.

But the retirement dream I hear about most often, is to move closer to children or grandchildren.

I was speaking with a long-time acquaintance of mine, Jim Lomax from Fairway mortgage. He was explaining the benefits of purchasing your dream retirement home with a Reverse Mortgage. Hear me out! It took a lot of convincing on Jim’s part, considering how skeptical I’ve always been about reverse mortgages. However, there was a lot I didn’t know, and a lot of ‘facts’ I was wrong about. This the smart way to put your home’s equity to work for you.

Did you know:
You can buy much more house than you own right now, or downsize, move closer to family, or into an Active Adult community, all with no monthly mortgage payments… ever.

Things that you thought you knew and common misconceptions that I certainly believed:
*Reverse Mortgages, Myths and Facts information provided by Jim Lomax of Fairway Mortgage.

Myth: I could lose my house – FACT: You cannot be forced to sell and the bank cannot take your home as long as all loan terms are met, you continue to pay your taxes, insurance and upkeep. As long as you honor the terms of your loan, the bank can not foreclose. You can live there til you die.
Myth: Your family looses the right to the home when you pass away – FACT: This is remarkable so read carefully. Whether you sell or you pass away, neither you, your estate or your heirs are responsible for paying the deficit if the balance owed on your reverse mortgage exceeds the home’s value. Let me say this another way- if the market crashes and your home loses value you will not be held liable for the shortfall if what you owe is more than home’s sales price.
Myth: You or your house must be debt free to qualify – FACT: You could sell your current home and purchase a much more expensive home without ever making a mortgage payment. As a matter of fact, there is very little required of you financially to qualify. The house must be your primary residence (you live there 6+ months per year), you must be able to pay for taxes, insurance and maintenance of the home. Appraised or market value is used to determine the amount that you qualify for.
Myth: I will be giving up the deed to my home and will not own it anymore – FACT: The deed remains in your name You can change your mind and sell or move whenever you want. The bank must honor the commitment of the reverse mortgage for life or as long as you live in the home.
Myth: The safest thing is a house “free and clear” – FACT: A reverse mortgage allows YOU manage your investment and the equity in your own home by helping you pay long-term medical expenses if necessary such as an extended nursing home stay, or a lawsuit.

A few other notable facts:

A Reverse Mortgage is not a government benefit, it is made possible by FHA and insured by MIP, monitoring lenders to ensure that consumers are treated fairly and equitably.
The Reverse Mortgage is a non-recourse loan. You and your children can never be liable for any amount beyond the value of the home because the loan is guaranteed by the FHA.
A Reverse Mortgage is a great option to add cash flow for a borrower 62 and over and only 1 borrower must qualify under the age restriction.

If you are interested in putting your hard-earned retirement to good use while living in your dream home, whether this means a larger home, a place closer to family or grandchildren, a downsize and more vacations or relocation to an Active Adult community, or if your dream is to retire in sunny Arizona, call me! I’m always happy to help.