#48 Using A Reverse Mortgage To Buy A Place For Wintering In The Sun
SNOWBIRDING MADE SIMPLE WITH A REVERSE
Like so many other older adults, you cherish the memories you’ve created in Indiana, and have decided to spend your retirement years here in your Hoosier home. Still, as each winter approaches, prospects of snow shoveling and blistering winds – not to mention the risk of falling on icy ground – have you thinking about owning a second home in a sunnier climate, becoming, like so many of your friends, a “snowbird”.
While you may well have the resources to make a substantial down payment on a winter home in a warmer climate, perhaps even enough to totally finance the cost of a second residence, you’re reluctant to deplete your retirement assets or overhaul your investment strategy. A reverse mortgage might offer the perfect solution.
In fact, one of the uses of an FHA-insured reverse mortgage involves eliminating the monthly mortgage payment on your existing home, then using the reverse mortgage proceeds to make conventional mortgage payments on a winter home in a warmer location. And, if you are in the enviable position of having a paid-up mortgage on your present home, those reverse mortgage proceeds might well be enough to allow you to pay all cash for that second home, all without affecting your investment portfolio.
You understand that, while there will be no mandatory monthly mortgage payment on the reverse mortgage on your primary home, you’ll continue to be responsible for property taxes, homeowners insurance, and home maintenance costs year-round, even during the months you’re off to sunnier climates.
Think about it – if just imagining those long walks on the beach, riding a bike in the early evenings – all winter long – is enough to bring a smile to your face, you might just be ready to become a Snowbird.