Peter is 75 years old and is beginning to struggle to pay for and maintain his existing $750,000 home. So, he was planning on selling that home, netting about $500,000, and using the proceeds to pay cash for a new $500,000 home in a maintenance-free senior community.
· His only income is his $3,500 a month SS Income and a small IRA.
· He could use some additional funds for retirement, but doesn’t want to take on a new mortgage or mortgage payment. So, the LO suggested a Home Equity Conversion Mortgage – reverse mortgage purchase loan as a way to purchase the new home, preserve some of his cash from the proceeds to use for retirement expenses, but still have NO required monthly mortgage payment on the new home. The benefits he received were

· Used $190,000 Reverse Mortgage plus $310,000 cash from the sale of his previous home to purchase his new $500,000 home with NO monthly mortgage payment.
· Preserved $190,000 cash from the sale of his home to put into savings as additional cash to use in retirement
· Reduced his overall monthly expenses because he no longer has a mortgage payment and only has to budget to pay his taxes and insurance each year
· Got into the home he wanted, has fewer expenses, less maintenance he has to worry about also now has $190,000 cash in the bank to better enjoy his retirement!
· All of this because he used the Reverse Mortgage Purchase to buy his new home with a reduced down payment versus “All Cash,” preserving his cash to use in retirement!

For more information, please call Scott Underwood at (205) 908-2993 or email scott@reversemortgagealabama.com. I have 19 years’ experience, and I am a broker for many lenders so I should be able to give you the best deal that fits you. I also don’t have a large ad budget to work into each loan.