For the first time in 8 years, boomers are buying homes at a faster rate than millennials. A reverse mortgage for purchase can be a good option when they’re looking to buy a home. A reverse mortgage for purchase allows seniors to purchase a new home and pay for it without making monthly mortgage payments. Instead, the loan is repaid when the borrower sells the home, moves out, or passes away.
There are several advantages of a reverse mortgage for purchase for senior citizens. First, a reverse mortgage for purchase can help seniors preserve their savings and investments. By using a reverse mortgage to purchase a home, seniors can avoid depleting their savings or investments to pay for the home. Instead, they can use the equity in their home to fund their retirement expenses.
Second, a reverse mortgage for purchase can help seniors stretch their retirement income further. By not having to make monthly mortgage payments, seniors can use their retirement savings and income for other expenses, such as healthcare or leisure activities.
Third, it can allow seniors to purchase a new home that better suits their needs as they age, such as a home with fewer stairs or one that is closer to family. This can help seniors maintain their independence and quality of life.
Finally, a reverse mortgage for purchase can help seniors leave a legacy for their heirs. When the loan is repaid, any remaining equity in the home can be passed on to their heirs.
In summary, a reverse mortgage for purchase can be a good option for those 62 and older who are looking to purchase a new home. It can provide them with financial flexibility, help them preserve their savings, and improve their quality of life in retirement. However, as with any financial decision, it’s important to carefully weigh the pros and cons before deciding if a reverse mortgage for purchase is right for you.
Jan Jordan is a Reverse Mortgage Specialist serving the Fort Lupton, Erie, Lafayette, 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.