Using a Reverse Mortgage for Purchase…

Can be a unique and beneficial option for aging in place seniors.  A reverse mortgage for purchase is not your typical mortgage product.  It can be a very useful tool for retirees who wish to improve their “cash flow” during retirement years.  It can also provide more purchase power by allowing the retiree to retain additional assets as opposed to liquidating all funds to close.  Retained assets could be used for upgrades or home improvement projects.  Maybe a wwell-deserved vacation!

Using a Reverse Mortgage to Purchase can be advantageous due to the currently low-interest rates.  Lower the interest rates mean a higher Maximum Claim ( the amount you can borrow).  A larger reverse mortgage for purchase might be needed due to higher housing costs.  Eventually, those rates will rise.  Higher interest rates will reduce the amounts one can draw with a reverse mortgage.  If one’s portfolio is expected to mature in a number of years then it is possible that a reverse for purchase now would allow those assets to achieve its highest return.

There are still other potential benefits that a reverse mortgage for purchase may have for seniors depending on each individual circumstance.  Not everyone has a need for a reverse mortgage but for those who qualify it is an option that may be worth considering.