Our daily roundup of retirement news your clients may be thinking about.
How seniors can finance upsizing to a new home Older couples who consider moving to a bigger or more expensive home have the option to apply for a reverse mortgage for purchase, according to this article on CBS Moneywatch. For example, say they sell their old home for $300,000 and purchase a bigger house for $450,000. They can use a portion of the sale proceeds to pay a large down payment, say 52% of the new property's home sale price, and finance the rest with a "reverse mortgage for purchase." In the process of this example, they would even pocket up to $66,000 from the home they sold, minus any closing costs. If they used Realtor, the commission could be several thousand dollars and would reduce their net gain somewhat. The reverse mortgage loan doesn’t need to be repaid until they sell the new home, pass away or move out, as long as other obligations are met, such as property taxes, insurance and maintenance.
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