Buy With A Reverse Mortgage Did you know if you are 62 years old or older, you can buy a home with a reverse mortgage? Mortgage professional Fred DeLuca outlines how you can save your assets by using a reverse mortgage to purchase a home using an example of a couple from Chicago.
Mr. and Mrs. Jones have both recently retired and are looking to sell their home and move to Arizona to be closer to family. They sold the property in Chicago and received $200,000 in net proceeds from that sale.
Now, Carla who’s their Arizona real estate agent found them an absolutely gorgeous home. The list price of that home? $400,000. Now the reason they are willing to pay that much is because that particular property is in their desired neighborhood near to their family and their grand kids. Now in addition to $200,000 in proceeds, the Jones, they have other funds sitting in savings accounts in other areas. They’ve got $200,000 from the proceeds, they have $200,000 in an IRA and they have $200,000 in a account in stocks… so they have a total of $600,000 in assets that they would be able to use. Now with them being on a fixed budget, they don’t want to have a mortgage payment at all. Now in order to do that, they will need to pay cash for the home. However they are concerned that if they buy their dream home it will deplete a good portion of their assets. So if they purchase a home for $400,000, the cost of their dream home, if they want to pay cash for it, that only leaves them with $200,000 in remaining assets. So the’re a little worried, they’re maybe getting a little discouraged. So instead of looking for their perfect retirement home near their family, they might have to settle for a home with a lot less money in a neighborhood, which probably isn’t as nice as they would like and not as close to their family as they would like to be. They want to see their grandkids. So instead of settling for a lesser desirable property, what if they get a reverse mortgage to buy a home. Now if they use a reverse mortgage to purchase a home not only will they be able to purchase that dream home, but they’ll be able to keep most of their money or a good portion of their money, and they still will not have a mortgage payment, believe it or not. Let me show you how. Now, with reverse mortgage, if they purchased their desired purchase price of a home for $400,000.. Let’s say they only put 50% down, which is $200,000 what does this do for the Joneses? 1. It doesn’t give them a mortgage payment at all.. Now they will still have to pay their taxes and insurance and they’ll still have to upkeep the home. But they will not have a mortgage payment and they will keep a good portion of their assets. Instead of having just $200,000 in their assets, the remaining assets they will have over $400,000 but better yet, they will not have a mortgage payment at all. TWo shot maybe
5:11 Fred: Let me ask yoiu a question.. Have you ever ran into maybe a buyer who is like the Joneses who maybe they didn’t want to have a mortgage payment, they wanted to live in a nice neighborhood
DJI-0168-002
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1:31 Fred : Now Carla have you ever run into a situation kinda like the Joneses, where you had somebody who.. They were kind of worried about buying a home because they thought that it was going to leave them without any money?
Carla: Yes absolutely…there are a lot of people when they are on a fixed income they want to keep their assets in the bank just in case. And then also there are people who don’t have enough cash to buy a home like that. They can’t afford a certain price of home and this is a way to get it for them.
Fred: They could get their desired purchase price and not put as much money down. So, listen if you need any more information, give me a call.. You have to be 62 or older. If you’re looking for more information on how to purchase a reverse mortgage, give me a call.. Fred DeLuca, Fairway mortgage, 480-862-6165, and if you need a real estate agent, who knows the west side of town particularly in general or just a great agent in general.. Who’ll work her butt off for you.. It’s Carla.
Carla: Thank you Fred, I’m at 808-295-1776.. And you can reach me at carlayoung.com.
Fred; Alright thank you. Take care and hey, lets be careful out there.
Supplemental script.
If you would like to learn more about reverse mortgages, Fred has a guide for you to download free. Just click on the link below this video to get the guide and find out if a reverse mortgage is right for you.
GET THE FREE REVERSE MORTGAGE GUIDE HERE: https://carlayoung.com/guide-to-reverse-mortgage-loans/ Fred DeLuca, Fairway Independent Mortgage, 480 862-6165, [email protected] Search for homes in Sun City, Arizona: www.CarlaYoung.com I’m a Realtor® in Sun City, Arizona with Keller Williams Professional Partners. I’m a resident of Sun City, animal lover, tech nerd, and former TV news producer/editor. Making videos for real estate is a way I can blend my love of real estate, Sun City, and TV skills into something that will help people who are interested in buying and selling in what is commonly known as the first retirement community in the nation. If you want to chat with me about Sun City real estate, please email me at [email protected] My phone number is 808-295-1776.
