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User Name:
Stephen_Kinney
(member since 10/30/2008)
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0 Questions and 2 Answers
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As Terry stated above this is not an easy question to answer. The best place to start is with your ...
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As Terry stated above this is not an easy question to answer. The best place to start is with your current financial situation. Start by listing in detail your current expenses broken down on a monthly basis. Be sure to list the expenses that are related to your home, or would be paid off from the proceeds in a separate column so that you can arrive at a total for these expenses. Next calculate your current take-home pay, and subtract all your expenses other than the home related expenses. This will give you the amount of your current income that will be available to meet the expenses on a new home. Next, arrive at a REALISTIC value that you could sell your home for today and subtract the amount of money you need to pay off your existing mortgage and any other debts you would pay off with the proceeds. If you were to sell your house there will be expenses. A good rule of thumb is to assume expenses between 8% and 10%. This will cover the real estate commission and other miscellaneous expenses including moving. Subtract these expenses as well. Now, subtract an estimate of the closing costs associated with purchasing a new home. The rule of thumb here is 6% to 7% for closing costs and miscellaneous expenses. What you should end up with is the amount of income you have available to support a new home, and the amount of funds you have available for purchase that new home. If it's not enough to get what you really want and you may find it worthwhile to take out a reverse mortgage and stay in your existing home. Recently, HUD allowed reverse mortgages to purchase a new home. So you might also consider purchasing a less expensive home with lower taxes or expenses, and using a reverse mortgage to help you afford the home. When arriving at your final decision, consider all the financial implications, as well as the personal implications and find a reverse mortgage specialist who will take the time to go through this analysis with you on paper. Stephen Kinney Stephen Kinney Associates,Inc www.stephenkinney.com
There is at least one company that offers a reverse mortgage for 60 year olds. The simple 60 is offe...
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There is at least one company that offers a reverse mortgage for 60 year olds. The simple 60 is offered by World Alliance Financial. You may also find this product through one of their correspondent lenders. Bear in mind that this mortgage is a private offering and not insured buy the Federal Housing Administration as most reverse mortgages are. (Please note: that at this writing the Simple 60 is temporarily suspended sue the lack of funds in the financial markets).
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