A downsize with a Reverse Mortgage could be an excellent option to live better in retirement.
Itâ€™s amazing how dramatically life can change from year to year. My wife and I have six kids all under 12. I can see already that our housing needs are going to shift pretty dramatically over the next 20 years. For the next decade, weâ€™ll need more rooms and bathrooms to avoid teenager contention. But after our kids, all leave the home weâ€™re not going to need all of that space.
The same thing happens to retirees. Four, Five, and Six Bedroom homes are an enormous burden of expense and upkeep for empty nesters. Downsizing to a more suitable home and better climate has become the new normal for people in retirement.
How does a Reverse Mortgage Help
A downsize to a smaller home reduces costs and upkeep which would be ideal in retirement. The added benefit of using a Reverse Mortgage is keeping more cash in your pocket when you buy the home. This lets them improve their situation in retirement by having more freedom, flexibility, and cash to enjoy their golden years.
We recently helped a client go through this transition. They sold their 4,000 sq foot family home for $1,100,000 in California. By relocating to St George Utah they found a beautiful new home with 2,000 sq feet for only $450,000. They used the proceeds of the California home to pay off their old mortgage and pay the down payment on the new home. After the down payment of roughly 50% for the new home, they kept $300,000 in their pocket to enjoy retirement. With the Reverse Mortgage, they have cash in hand and no monthly mortgage payment as long as they live in the home and pay its expenses.
If you or someone you love is considering a Reverse Mortgage please let us know how we can help.
President – Reverse Mortgage Specialist
Heritage Reverse Mortgage
Heritage NMLS #1497455 Trevorâ€™s NMLS #: 267962
1060 South Main Street Bldg. A Suite 101B
St George Utah 84770