Got Your Love to Keep Me Warm
Steve and Nancy lived in Lake Arrowhead, California for 38 years. They raised their children there. The children moved off the hill years ago. The old folks wanted to leave the mountains to a more convenient place with no snow, no ice and no Arctic winds. The only saving grace was they had gobs of equity in the place.
The kids wanted Steve and Nancy to sell the home in the mountains and find a place closer to them so they could provide support. The move made no sense because they could not qualify for a standard mortgage without sufficient income and renting would eat up their reserve cash sooner than later.
Like so many others, Steve and Nancy thought they were stuck for life.
Oh no they weren’t!
Their attorney recommended a reverse mortgage to buy a home in the flatlands after they sold their old home in Lake Arrowhead.
Let me show you how that worked:
1. Sold the homestead. They netted $300,000.
2. Bought a more optimal home in the “flatlands”
Purchase price: $ 280,000
Less Reverse Mortgage proceeds: ($150,000)
Cash to Close. $ 130,000
Cash remaining after purchase: $170,000 ($300,000 – $130,000)
Can be used to:
1. Supplement the monthly cash flow
2. Make investments
3. Make gifts
5. Any other purpose
Appropriate location – near family
No monthly mortgage payment