Use a Reverse Mortgage to become a Snowbird
Today I had a consultation with a client from my hometown of Roosevelt Utah. These clients find themselves in a very common situation. Their health no longer agrees with the frigid weather of the Uintah Basin winters. They want to keep the home in Roosevelt because it is near to their children and grandchildren but they must buy a home in St George to snowbird for the winter.
The struggle they face is that they are stuck with a fixed income and in their mid 70?s going back to work is out of the question. In similar situations these are the options most people consider:
- Traditional Mortgage – A Traditional mortgage would allow them to buy a new home but it would also give them a monthly payment on a 30-year mortgage which their fixed income cannot support.
- Manufactured Home – A manufactured home may be an affordable alternative but many cities in Southern Utah have regulations against building new manufactured homes and it may be difficult to find an existing manufactured home that is in good condition and fits the homeowner’s needs.
- Reverse Mortgage – A Reverse mortgage allows someone to purchase a home with only a percentage of the purchase price required upfront and they then own the home with no required mortgage payments.
By using a Reverse mortgage to become a snowbird these clients can keep their home in Roosevelt Utah to have a summer home and to be close to their kids in the Uintah Basin. They use some of their assets to purchase a new home in St George with roughly 50% of the purchase price as their down payment and now they own two homes with no required mortgage payments. Their only responsibility is to continue paying for the property expenses such as Taxes, Insurance, and HOAs.
If you or someone you love is looking for a way to become a snowbird and own another home in a warmer climate give me a call and we’ll review your options.
President – Reverse Mortgage Specialist
Heritage Reverse Mortgage
Heritage NMLS #1497455 Trevor?s NMLS #: 267962
1060 South Main Street Bldg. A Suite 101B
St George Utah 84770