So what really is the smartest way to retire with a home?
HUD has developed some very good records of the Reverse Mortgage Program since they took it over. In addition, third party surveys and polls have established a very positive track record for customer satisfaction when it comes to the owners of reverse mortgages. Could it be we are seeing a trend of intelligent retirees changing the way they see how to retire with a home?
Traditional thinking is that you work for 20 to 30 years, pay off a home and live in it for the rest of your life. Today less and less retirees are staying in the home that they lived in during their working years. They are headed south to the sun.
Since these retirees are in the market for a new home, the ones that do the research and actually think their way through the process are faced with a decision. Should I park the cash for the total amount of the purchase in the home and not touch it for the rest of my life, or should I take advantage of a government entitlement, a reverse mortgage?
Example: Arizona home valued at $250,000. Retiree at age 62.
Old way: Purchase the home for $250,000 and live with no mortgage payments for life.
New way: Purchase the home for less than $125,000 and live with no mortgage payments for life and invest the other $125,000 in investments that will both grow and provide me with additional monthly income.
In this industry we hear people tell us that reverse mortgages are “bad” , or “too expensive”. My question is, “Why would you park all that cash and not have it working for you?”
Bob
bob@az62.com
www.az62.com
623-214-6663
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