Baby boomers are buying homes at a faster rate than millennials for the first time ever, but this trend also comes with an increasing amount of debt near retirement age. While owning a home can be a valuable asset, carrying debt into retirement can create financial stress and strain. However, there is a solution that can help baby boomers purchase a home without taking on excessive debt: the reverse mortgage for purchase.
A reverse mortgage for purchase allows older adults to buy a home and finance the purchase with a reverse mortgage. With this option, baby boomers can purchase a home without taking on a large amount of debt and can often also supplement their retirement income with the payments received from the reverse mortgage.
One of the primary advantages of a reverse mortgage for purchase is that it can provide a way for baby boomers to buy a home without draining their retirement savings or taking on additional new debt they must immediately pay. With traditional mortgages, borrowers are required to make monthly payments, which can be difficult to manage on a fixed income. However, with a reverse mortgage for purchase, the borrower receives payments based on the equity in the home, which can help them maintain their financial stability and avoid excessive debt.
Moreover, a reverse mortgage for purchase can also provide a way to downsize or move into a more suitable home or location without incurring excessive debt. For example, if a baby boomer wants to move into a smaller home that’s more affordable or move closer to family, a reverse mortgage for purchase can provide a way to do so.
Learn more about the creative financial Reverse Mortgage for Purchase tool here. And if you’re home shopping and your realtor hasn’t mentioned a reverse mortgage for purchase, ask them, or reach out to Jan Jordan for more info.
Jan Jordan is a Reverse Mortgage Specialist serving the Fort Collins, Loveland, Greeley, Longmont, Boulder and other Front Range areas of Colorado. Click here to contact Jan and learn if reverse mortgage is right for you.