Many of today’s retirees find downsizing to be an affordable way to age in place. A reverse for purchase, or HECM For Purchase, allows borrowers to finance the purchase of a home using a reverse mortgage. This option gives seniors the chance to find a home that meets their needs or move closer to family. Contact a One Reverse Mortgage licensed expert to learn more about how you could downsize using the reverse for purchase option.
- Smaller Mortgage
It’s simple. A smaller home is going to most likely mean that you will have a smaller mortgage payment. In fact, with a reverse mortgage loan you can convert the stored equity in your current home into tax-free* cash that can be used to purchase a new home with our reverse for purchase loan option. A reverse for purchase has the potential to allow homeowners 62 and over to completely eliminate a mortgage payment** on a new home if there is sufficient equity in the borrowers’ current home. (MORE: Reverse for purchase breakdown)
- Less Expenses
Moving to a smaller home is going to mean that you will most likely see a reduction in your monthly utility payments, insurance, and taxes, making more money available for the things you love. Not only that but downsizing will also mean that your home will require less up-keep which can certainly help retirees who wish to age in place.
- Climate Change
Many retirees choose to downsize in order to locate to a more desirable location in retirement. Today, many baby boomers are opting to downsize by moving to cities in the West Coast and South where the climate better meets a retirement lifestyle.
- More Affordable Town
Today, many baby boomers are opting to downsize by moving to cities in the West Coast and South where the climate better meets retirement lifestyle. The cost of living often reflects the housing market. So make sure to consider that not only your home but your everyday expenses could be reduced by downsizing. (Read CNN’s list for most affordable cities for retirement living).
- Lifestyle Upgrade
Retirement offers time for recreational activities that you can take advantage of by moving to a community that offers great golf and tennis facilities, or a fun nightlife with concerts, restaurants, and theater attractions. Others often see downsizing as an opportunity to move closer to kids and grandchildren.
- Less Stuff = More Life
Downsizing could be the refinance you need to reduce or eliminate monthly mortgage payments and make room for travel, outdoor activities, and other amenities that you didn’t know you had the option to take!
Contact a One Reverse Licensed Professional to find out how a reverse for purchase can help you downsize and more importantly, help you live your dream retirement.
*Please consult with your financial advisor.
**Homeowner is still responsible for taxes, insurance, and property maintenance.