I met with a retired couple, ages 69 and 70. They have their home listed for $105,000 and expect to net about $98,000 from the sale. They are considering purchasing a low-maintenance home, energy efficient, one-level. The cost of the new home is $143,000. They have $30,000 in savings, and they collect Social Security, $2300 between the two of them. They do not want a mortgage payment, but they do not have enough funds to pay cash, even if they emptied their savings.
One option is the reverse mortgage for purchase program. Based on their ages and the price of the new home, they can have access to about $76,000, tax-free. Now they can use those loan proceeds, add $67,000 from the sale of their home, and have a total of $61,000 of liquid funds (their current savings of $30,000 plus $$31,000 from the sale of their home). They will never have a mortgage payment.
They discussed this with their children (as I recommended). It made sense for them to pursue this option, as the children wanted their folks to be safe and have some extra financial security.
For more information on reverse mortgages and to see what you qualify for please visit: www.topflitereverse.com/florian
Retirement should be planned correctly and efficiently because their funds and savings depends on what options they will prefer to.Their are lots of retirement options nowadays.Opting to the best is a must.Thanks for posting.
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