Mortgage Updates

 Or....How to have that cake and eat it too!

What a fun day I had! My morning was working with 1^st time buyers and my afternoon was working with a senior buyer researching the options available for the purchase of a lovely home in an active Senior Community. At 84 and with a current home free and clear, this buyer was looking at making some changes. Things were getting more difficult. Although health and mobility were not yet a problem, it was time to make a change into adult living with support options.

Developed for purchase transactions, the Senior Advantage Mortgage has much in common with the reverse mortgage. The key difference is that the interest rate is fixed for the life of the loan, negating surprises, and the whole distribution is made at one time.

So you say, tell me more… Let’s look at a recent example. A couple in their mid 80’s sold their free and clear home for $350,000 and realized $322,000 from the sale. The home they were buying had a final sales price of $415,000. Their options were to plunk all $322,000 into the purchase and get a $98,000 forward mortgage for the remaining portion and some closing costs. Resulting in an uncomfortable mortgage payment and a serious effect on future discretionary spending.

Instead the better option was for them to come in with $98,000 down payment and get a $317,000 Senior Advantage Purchase Reverse Mortgage. Now they would have no monthly loan payments, and they have $224,000 to put in the bank to earn interest and draw upon as needed.

• The Senior Advantage mortgage never has a monthly loan payment.
• The Senior Advantage Mortgage never leaves an heir “holding the bag”… of debt that is.
• The Senior Advantage Mortgage is like buying your home for “cash” and making living a bit easier.

Questions? Please email me at ipierson@vitek-builderdivision.com