You have a couple who are both 80 years of age and have $200,000 in home equity; they could get a Reverse Mortgage and buy a home in Palm Springs for around $500,000. They would have no loan payment, but would be responsible for Taxes and Insurance each year. Also, they do not have to qualify for a loan and be turned down because they lack two years of income. Even Ben Bernanke was turned down for a QM mortgage, a regular old fashioned loan.
Everybody thinks that a Reverse Mortgage is only for someone who wants to stay in their home. That is the reason for the majority of Reverse Mortgages, but there are other advantages. You can buy a home as illustrated above or get an Equity Line of Credit on your home that you could use at a later time. The Equity Line of Credit when unused keeps growing every year. A real sleep-at-night-instrument.
So get a Reverse Mortgage and stay in your home, buy a new home or build an equity line of credit for later emergencies. Fred Thompson, Fonzi, Robert Wagner, Pat Boone and Alex Trebeck can’t all be wrong. Thompson even helped his 91 year old mother get a reverse mortgage.
If you want more information, go to your friendly, competent, BRE, or DBO Loan Broker who specializes in these complicated loans. If you have no such friendly Broker, send me an email with your zip code, and I will email you referral contact information for someone who can service your area. I will not send your email to Fred Thompson, Fonzi or other people, I promise.