“Right-sizing” with a Reverse Purchase
The new, consolidated reverse mortgage loan still has a ways to go before it can become what the FHA hoped it would when the changes were implemented. However, this doesn’t mean that the effort to educate the reverse mortgage loan industry, and the public, will be anything less than stellar.
In fact, many in the industry have finally realized that unless the public is educated about the changes, there will be a heavy price to pay. Consumer interest hasn’t slowed down, but the loan has changed, making it a safer but, ultimately, a different program than it once was.
If we hope to move forward from the changes, the time is now to reinforce our efforts and help consumers see the program is still in their best interest, if the need should arise.
One of these needs, the need to “right size” (the need to downsize to a smaller house during retirement), will now be more important than ever, especially since older Americans are living longer into retirement.
If the home they currently live in is too big for them to maintain and they wish to move into a smaller home, what better way to do so than by forgoing monthly mortgage payments on their new home for the rest of their retirement.
The Reverse Purchase is a way to do this, even if the reverse mortgage loan industry hasn’t seen its potential as of late.
Before brokers can offer the Reverse Purchase to their clients though, they will need to educate themselves on the program first and foremost in order to educate consumers.
Any consumers interested in right sizing for the future should look into the HECM for Purchase in order to buy a home better suited to their needs during their retirement.
I have done reverse purchases in the past and have seen first hand the benefits of having enough funds to buy a new home without having to worry about mortgage payments. Consider your options and take the plunge into a comfortable retirement.
Be aware that while you cannot lose your home under normal circumstances, foreclosure may occur if you do not pay your taxes and insurance and otherwise comply with the loan terms.
If you’re interested in a reverse mortgage loan or simply have more questions, give PS Financial Services a call at (888) 845-6630 or send us an email at info@PSReverseMortgage.com. We do not pressure those who inquire, we’re simply here to help.