A Mortgage For Widows?
Hey everyone, Mortgage Nerd here! So what do I mean by reverse mortgage for widows? When you have someone who’s a widow or a widower, they’ve lost one of the incomes. They keep the higher income of the 2 when it comes to social security income and retirement income, but they’ve still lost one of the incomes, so they might need to downsize.
I had a client I was talking to and a family member that I’ve been talking about this with, downsizing, selling their current home, and then getting something smaller, more affordable, less upkeep, and doing a reverse mortgage for purchase on that property. So basically, you’re gonna put a larger down payment, a 50%-60% down payment, and the rest of the money is going to be the reverse mortgage, which means you don’t have to make a monthly payment.
You have flexible payments, so instead of taking the money out of pocket every month and sending it into the bank and that interest goes to them, you’re keeping that money for your living expenses since you lost someone else’s income that was in your household. Now, you do have to keep paying the property taxes and homeowners insurance, but it’s a lot less expensive than rent, and probably a lot less expensive than the property taxes and homeowners insurance they’re currently paying under a larger property that was for more people. So reverse mortgage for widows, widowers, could be a HECM for purchase, which is the reverse mortgage for purchase, or could just be a reverse mortgage period, so they can stay in the home that they love.