#240: Using a reverse mortgage in combination with a Roth conversion

By: John Metcalf

June 26, 2025

ROTH CONVERSION/ REVERSE COMBO HELPS CREATE TAX-FREE LEGACY

With both of you turning 73 later this year, you’re reminded that you will need to take your first Required Minimum Distributions out of your IRAs. Of the belief that future tax rates are likely to be higher than today’s, you also like the idea of creating a legacy for heirs that has no tax burden attached.

The issue is that, although your income from speaking engagements plus your combined pension and Social allow you to maintain some cash reserves, you are in no position to fund the one-time, six-figure tax liability that would result from converting those traditional IRAs to Roths. Alternatives you are considering include a “staged” conversion of funds to Roth IRA accounts or perhaps converting your account but not hers. Of course, you understand that, unless you were both to do a total one-time conversion, there would still be the need to take RMDs on whatever balances remained in either or both traditional IRA accounts..

In contemplating different approaches to Roth conversion tactics, consider your housing wealth in the mix. Using a reverse mortgage “standby line of credit”, you can tap your own home equity to the extent needed to pay tax on one or both Roth IRA conversions.

Importantly, moving forward, you would have no obligation to make monthly mortgage payments, continuing to be responsible for upkeep and insurance. Since reverse mortgages are non-recourse loans, both you and your heirs would be protected from ever being “upside down” (owing an amount greater than the value of the home itself). Meanwhile, the Roth conversion would help provide that no-tax-burden-attached legacy for your heirs.

https://mutualreverse.com/david-garrison

Readers, if you’d like to see what you might qualify for with a reverse mortgage in Indiana, or to download your Reverse Mortgage Guide Click Here (and scroll down).

Please consult a tax advisor. David Garrison, NMLS ID 1595194. Mutual of Omaha Mortgage, Inc. dba Mutual of Omaha Reverse Mortgage, NMLS ID 1025894. 3131 Camino Del Rio N 1100, San Diego, CA 92108. Indiana-DFI Mortgage Lending License 43321. Michigan 1st Mortgage Broker/Lender/Servicer Registrant FR0022702. These materials are not from HUD or FHA and the document was not approved by HUD, FHA or any Government Agency. Subject to credit approval. For licensing information, go to: www.nmlsconsumeraccess.orgEqual Housing Lender

#239: Using a reverse mortgage as a rebalancing tool

By: John Metcalf

June 26, 2025

KEEPING HOUSING AND INVESTMENT WEALTH IN THE BALANCE

Following your retirement (yours six years ago, your husband’s a year later), you used a little over half your reverse mortgage line of credit to “outfit” your home for the long haul of “aging in place”. With that big project completed, you have not found the need to tap the line of credit any further.

Meanwhile, given the crazy ride in the investment markets over the past few months, you are starting to be concerned about the possibility of further drops in the value of your accounts. And while receipt of some higher-than expected consulting “gig” income would have made it possible to “rebalance” your portfolio by adding funds to equities, you’ve decided you’re not comfortable doing that.

While avoiding any comment on your portfolio allocation strategy, have you considered using the “unexpected” consulting income to “invest” in your own reverse mortgage? Since interest rates on CDs and, money market accounts are still quite low, you might enhance your “fixed income” return by putting the money back into your own “account”, by making voluntary by repayments of your reverse mortgage loan.

As you pointed out earlier, your reverse mortgage has turned your housing wealth into a “revolving line of credit, and making voluntary payments is a way to “grow” the “equity” portion of your overall asset holdings without actually purchasing more stock. (You might also consult your tax advisor about whether you could qualify for an interest deduction if and when you make a large payment on your reverse mortgage.)

Thinking of your total assets (not only your investment assets) as your “portfolio”, you can keep your housing wealth and your investment wealth “in balance”.

https://mutualreverse.com/david-garrison

David Garrison, NMLS ID 1595194. Mutual of Omaha Mortgage, Inc. dba Mutual of Omaha Reverse Mortgage, NMLS ID 1025894. 3131 Camino Del Rio N 1100, San Diego, CA 92108. Indiana-DFI Mortgage Lending License 43321. Michigan 1st Mortgage Broker/Lender/Servicer Registrant FR0022702. These materials are not from HUD or FHA and the document was not approved by HUD, FHA or any Government Agency. Subject to credit approval. For licensing information, go to: www.nmlsconsumeraccess.orgEqual Housing Lender

#238: Using a reverse mortgage funding to enhance your legacy

By: John Metcalf

June 26, 2025

STEPPING UP YOUR LEGACY

While your intention is to continue living at home for the rest of your days on Earth (your husband died almost eight years ago), you realize that, with both your children living in other states, neither is going to want to inherit the house, beautiful as it is, once your own life is over. For that very reason, you are considering transferring half ownership to the kids while you’re still alive. In case some health setback were to force a move to move to some kind of care facility, the children could simply wait for the right time to sell and handle everything. You would not need to concern yourself with “prepping” the property, hiring a realtor, etc.

An tax advisor or estate planning attorney would probably point out to you that transferring a home to your children during your lifetime (as opposed to naming them beneficiaries in your will or trust) may not be such a good idea. Assuming your home has greatly appreciated in value over the years you’ve owned it, at least under current tax law, if you die while still owning the home, there would be a “step-up in basis“, avoiding a large capital gains tax liability for your children, an advantage would be lost were you to transfer your home to your children now.

There’s a second reason to avoid giving the home to your children now. You might be deemed ineligible for Medicaid benefits if ownership of the home has been transferred within five years of applying for benefits Medicaid. (You would be seen as having given away assets which could have been used to pay for your care).

A more viable and flexible plan might be to apply for a reverse mortgage as a way of establishing a source of growing wealth earmarked to go to your children upon your death. Under such a plan, were ill health to force a permanent move out of the home, the children would have six months (plus possibly two ninety-day extensions) to either sell the home or satisfy that loan with their own funds and holding onto the property for as long as they cared to.)

While it may not be practical for your children to be given ownership of your home now, your housing wealth will remain an important part of your legacy to them.

https://mutualreverse.com/david-garrison

Please consult a tax specialist. This is not tax advice. David Garrison, NMLS ID 1595194. Mutual of Omaha Mortgage, Inc. dba Mutual of Omaha Reverse Mortgage, NMLS ID 1025894. 3131 Camino Del Rio N 1100, San Diego, CA 92108. Indiana-DFI Mortgage Lending License 43321. Michigan 1st Mortgage Broker/Lender/Servicer Registrant FR0022702. These materials are not from HUD or FHA and the document was not approved by HUD, FHA or any Government Agency. Subject to credit approval. For licensing information, go to: www.nmlsconsumeraccess.orgEqual Housing Lender

#237: Using a reverse mortgage to finance a “build”

By: John Metcalf

June 24, 2025

SMOOTHENING THE MOVE FROM OLD TO NEW

With both of you now in your in your mid-seventies, you’ve decided it’s time to move out of your three-story home with elaborate landscaping, into something more appropriate to what the AARP likes to call “aging in place.” You have been contemplating building a home that is more in keeping with your tastes and needs, rather than buying one and are considering one of the newer communities 45-60 minutes north of your present location.

While you do have liquid funds sufficient to fund a down payment, you’re concerned about the timing of the sale of your present home, not to mention once again taking on the burden of a mortgage.

With an earnest money deposit, many custom homebuilders will finance the building of a new home until it is ready to for you to occupy. At closing, the money owed the builder will come from a combination of the proceeds from the sale of your present home and a HECM (Home Equity Conversion Mortgage) for Purchase, which is a reverse mortgage on the new home.

It might well be that you have money left over from the proceeds of the sale of your present home, which can be used for furnishing the new home or adding to your investment accounts. There will be no obligation to make monthly mortgage payments;* if you should choose to “replenish” the equity in the new home, that money will grow at the same rate as that being charged on the reverse mortgage loan.

A Home Equity Conversion Mortgage for Purchase can smoothen your move from your “good” to your “best and last” home!

https://mutualreverse.com/david-garrison

*Borrower must occupy home as primary residence and remain current on property taxes, homeowner’s insurance, the costs of home maintenance, and any HOA fees.

#236: Using a reverse mortgage to avoid portfolio drawdown

By: John Metcalf

June 16, 2025

HELPING WOULD-BE SNOWBIRDS STAY PUT – IN BOTH HOME +PORTFOLIO

Recent political and stock market volatility seems to have combined, throwing many of your clients “for a loop”. One retired couple in particular – (for the sake of confidentiality, you refer to them as “Jack and Jill”), are worried that, not only is their portfolio under threat, but that they will now be unable to carry out their plan to escape Indiana winters and acquire a second residence in South Carolina.

While all your clients have been conditioned to understand that panic selling of assets is never a good idea, and that long-term positives outweigh short-term volatility, there’s no doubt that , for “Jack and Jill”, making the planned substantial cash withdrawal needed to finance the purchase of a winter home would not be wise. Proud that their present home has been mortgage-free for years, the couple has been considering applying for a line of credit in order to move forward with the South Carolina property purchase, reasoning that such a move would at least avert a monumental “hit” to their investment assets.

One stratagem well worth discussing with your clients is leveraging the power of their own housing wealth in the form of a reverse mortgage on their current home” to help finance their new South Carolina home. Not only are many clients unaware of their options in this regard, but many financial advisors are unaware of the extent of “cash” such a transaction can ‘bring to the table” for homeowners of retirement age who want to – or, who have for medical reasons be advised to – escape Indiana winters.

(As just one example, for homeowners in their 70s, given current interest rates, a reverse mortgage on their current $750,000 home might contribute as much as $260,000 to the purchase of a second home in South Carolina.

Important to understand, given the Jack and Jill situation, no monthly mortgage payments are ever required on a reverse mortgage, provided they maintain their obligations of real estate taxes, maintenance costs, and homeowners’ insurance. Later, should the investment climate turn “sunnier”, any monthly mortgage payments* they decide to make will flow dollar for dollar into a line of credit that will grow at the same rate as the interest being charged on the borrowed equity.

No financial advisor can assure clients that the investment “climate” is bound to improve. On the other hand, introducing “Jack and Jill” to the concept of a HECM for Purchase might result in a three-fold benefit – helping them escape our Hoosier winter weather while “staying put” – in both their present home and in their investment portfolio!

https://mutualreverse.com/david-garrison

*Borrower must occupy home as primary residence and remain current on property taxes, homeowner’s insurance, the costs of home maintenance, and any HOA fees. David Garrison, NMLS ID 1595194. Mutual of Omaha Mortgage, Inc. dba Mutual of Omaha Reverse Mortgage, NMLS ID 1025894. 3131 Camino Del Rio N 1100, San Diego, CA 92108. Indiana-DFI Mortgage Lending License 43321. Michigan 1st Mortgage Broker/Lender/Servicer Registrant FR0022702. These materials are not from HUD or FHA and the document was not approved by HUD, FHA or any Government Agency. Subject to credit approval. For licensing information, go to: www.nmlsconsumeraccess.orgEqual Housing Lender

Reverse Mortgages: A Powerful Retirement Tool for Senior Homeowners

By: John Metcalf

June 9, 2025

As living costs, healthcare expenses, and unexpected financial needs continue to rise, many retirees find that Social Security, pensions, and savings alone may not provide enough support. Fortunately, there’s a flexible financial option designed specifically for homeowners aged 62 and older: the reverse mortgage.

A reverse mortgage isn’t just a financial product—it’s a strategic tool that allows older homeowners to convert home equity into cash without monthly mortgage payments. For many, this can mean added financial security, peace of mind, and the freedom to enjoy retirement without the stress of making ends meet.

In this article, we’ll break down what reverse mortgages are, who qualifies, and the many benefits they offer—whether it’s funding everyday expenses, covering healthcare costs, or even helping grandchildren with college tuition.

What Is a Reverse Mortgage?

A reverse mortgage, officially known as a Home Equity Conversion Mortgage (HECM), is a government-backed loan available to homeowners aged 62 or older. It allows them to convert a portion of their home equity into tax-free cash while continuing to live in their home.

Unlike a traditional mortgage, there are no required monthly payments. Repayment is deferred until the borrower sells the home, moves out, or passes away.

Eligibility requirements include:

At least one homeowner must be 62 years or older.
The home must be the primary residence.
Sufficient home equity is needed.
Ongoing responsibilities include paying property taxes, homeowner’s insurance, and home maintenance.

How Are Funds Received?

Reverse mortgage funds can be disbursed in several ways:

Lump sum
Monthly payments
Line of credit
A combination of the above

The flexibility of distribution options allows borrowers to tailor the loan to their unique financial needs.

Key Benefits of a Reverse Mortgage

✅ Stay in Your Home

For many retirees, their home is more than a financial asset—it’s a place of comfort, memories, and emotional security. A reverse mortgage allows homeowners to stay in their home without monthly mortgage payments, easing one of their biggest financial burdens.

✅ No Monthly Mortgage Payments*

Borrowers aren’t required to make monthly mortgage payments. Instead, the loan is repaid when the home is sold or the homeowner no longer resides there. This can be a game-changer for retirees living on a fixed income.

*Borrowers must continue to pay property taxes, homeowners insurance, and home maintenance costs.

✅ Supplement Your Retirement Income

Whether your retirement savings are stretched thin or you simply want more financial freedom, reverse mortgage funds can provide a steady supplemental income. Monthly disbursements are ideal for covering everyday expenses and maintaining your lifestyle.

✅ A Buffer in Market Downturns

During times of stock market volatility, reverse mortgage funds can act as a safety net, helping retirees avoid selling investments at a loss. As retirement expert Dr. Wade Pfau notes, “Reverse mortgages can help sidestep this risk… creating more opportunity for the portfolio to recover.”

✅ Flexible Disbursement Options

Borrowers can customize how they receive funds—whether it’s a one-time payment for a major expense, monthly income, or a line of credit for emergencies. This level of control and flexibility makes reverse mortgages a versatile financial tool.

✅ Use the Funds However You Like

There are no restrictions on how the money can be used. Whether it’s for medical bills, home renovations, travel, or even helping family members with college costs, the choice is entirely up to the borrower.

✅ Tax-Free Proceeds Since reverse mortgage funds are classified as loan proceeds, not income, they are not taxable. This provides retirees with additional usable income without increasing their tax liability.

Built-In Protections for Borrowers

Reverse mortgages are insured by the Federal Housing Administration (FHA) and regulated by the U.S. Department of Housing and Urban Development (HUD). These safeguards include:

Non-recourse loan: Neither the borrower nor their heirs are responsible if the loan balance exceeds the home’s value at the time of repayment.
Mandatory HUD-approved counseling: Ensures borrowers understand all aspects of the loan.
Spousal protections: Non-borrowing spouses may remain in the home, provided certain conditions are met.
Interest rate caps: Adjustable-rate loans are capped to protect against extreme rate increases.

Bottom Line: Is a Reverse Mortgage Right for You?

A reverse mortgage can be a valuable financial resource for the right retiree. It offers a way to stay in your home, eliminate monthly mortgage payments, and create financial flexibility in your retirement years.

However, like any major financial decision, it’s important to consult with a trusted financial advisor, discuss your options with family, and work with a reputable reverse mortgage specialist.

Ready to Explore Your Options?

Start your journey toward a more secure retirement by contacting me today!

What to Expect in Retirement: Key Expenses and How to Prepare Financially

By: John Metcalf

June 9, 2025

Retirement is a long-anticipated milestone, but it also comes with new financial responsibilities. While your daily routine might slow down, your expenses don’t necessarily follow suit. In fact, some costs may surprise you.

In this blog post, we’ll break down the major expenses you can expect in retirement—and most importantly, how to prepare for them. Whether you’re already retired or planning, this guide will help you approach the future with greater financial confidence.

1. Housing Costs Don’t Retire When You Do

Housing remains the biggest expense for most retirees, accounting for up to 42% of the average retirement budget, according to Fidelity. Whether you own or rent, the costs don’t stop:

Mortgage or rent payments
Property taxes and insurance
HOA fees (if applicable)
Maintenance and repairs

🔧 Surprise expenses can add up fast. The Society of Actuaries found that major home repairs are the most common unexpected cost among retirees. Think roof replacements, plumbing problems, and HVAC issues—none of which come cheap.

💡 Pro tip: Set up a home maintenance emergency fund and consider downsizing or relocating to cut costs. For homeowners, a reverse mortgage may be an option to eliminate mortgage payments and tap into your equity.

🏠 Hidden Costs of Homeownership

According to Zillow and Thumbtack, the average homeowner spends $14,000 annually when you add hidden costs. Of that, around $6,400 goes to regular maintenance alone.

Common Home Repairs	Average Cost
Roof Repairs	$150 – $8,000
Roof Replacement	$5,855 – $13,073
Plumbing Repairs	$175 – $450
Water Heater Replacement	$1,300
HVAC Repairs	$130 – $2,000
Foundation Repairs	$5,018
Exterior Painting	$3,000

2. Health Care Costs: A Big Piece of the Retirement Puzzle

You might be surprised at how much healthcare can cost—even with Medicare.

👉 According to Fidelity’s 2023 estimate, a 65-year-old couple can expect to spend about $315,000 on healthcare over the course of retirement. That includes premiums, out-of-pocket costs, and prescription drug expenses.

What Medicare Doesn’t Cover

Even with Medicare Parts A, B, and D, you’ll still need to budget for:

Dental, vision, and hearing care
Long-term care
Premiums and deductibles
Out-of-pocket expenses

💡 Plan ahead by contributing to a Health Savings Account (HSA) while you’re still working. HSAs offer triple tax advantages and can help offset these future costs.

3. Dental Expenses: The Surprise Budget Buster

While dental care is a health-related cost, it’s one that many retirees overlook—until a big bill arrives.

🦷 24% of retirees reported major dental expenses as a financial shock (Society of Actuaries). And here’s the kicker: Medicare doesn’t cover routine dental care.

You’ll have to pay out of pocket for:

Cleanings
Fillings and crowns
Dentures
Tooth extractions

What Are Your Options?

Enroll in a Medicare Advantage (Part C) plan that includes dental
Purchase a standalone dental insurance plan
Set aside savings for major dental work

4. Everyday Living Costs Still Add Up

While some expenses like commuting may decrease, others stay the same—or even rise.

Common Monthly Expenses in Retirement:

Groceries: ~$130/week (Explore55Plus)
Dining out: ~$80/week
Utilities and transportation
Personal care and household items

📈 Prices have gone up. Food costs have increased over 25% since 2020, and gas prices rose 14% in early 2024 alone. Even small price hikes can have a big impact when you’re on a fixed income.

💡 Budget tip: Consider using monthly payouts from a reverse mortgage to help cover everyday expenses and provide a financial buffer.

5. Fun and Leisure: Don’t Forget to Budget for Joy

Retirement is your time to enjoy life—travel, hobbies, and time with loved ones. But fun still costs money.

🎯 Fidelity suggests adding 6% more to your retirement budget if you want to maintain an active lifestyle.

If that’s not realistic, try:

Local travel or “staycations”
Free community events
Volunteering or joining a local club
Gardening or learning a new skill

💬 Pro tip: Prioritize what brings you the most joy, and budget for it. You’ve earned it.

6. Family Support Can Be Costly

It’s not uncommon for retirees to continue supporting adult children or grandchildren.

👨‍👩‍👧 According to Bankrate, 68% of parents with adult children have helped financially—sometimes by dipping into retirement savings or delaying their own financial goals.

Before you offer help:

Make sure your own finances are secure
Set clear expectations
Consider gifting strategies or small recurring support rather than large lump sums

7. Emergency Expenses: Be Prepared for the Unexpected

Retirees can still face emergencies like:

Identity theft
Stock market losses
The loss of a spouse’s income

🛡️ Protect yourself with:

Adequate insurance coverage
Legal and financial documents in place (e.g., power of attorney, will)
A dedicated emergency fund

Working with a trusted financial advisor can help you create a strategy that covers all the “what ifs.”

Final Thoughts: Retire Smarter, Not Just Sooner

Preparing for retirement isn’t just about how much you save—it’s about planning for the real costs of living the life you want. By understanding the most common expenses and financial surprises, you can build a plan that helps you stay in control and enjoy your retirement years with peace of mind.

What’s your biggest financial concern about retirement?
Drop a comment below or reach out—we’d love to hear your thoughts.

What Is a HECM for Purchase? A Reverse Mortgage That Helps You Relocate in Retirement

By: John Metcalf

June 5, 2025

Are you thinking about relocating or downsizing in retirement, but wondering if a reverse mortgage could still be an option? Good news: it can.

Many people associate reverse mortgages with staying in their current home. But thanks to a unique program called HECM for Purchase—also known as a reverse mortgage for purchase—you can use a reverse mortgage to buy a new home and eliminate monthly mortgage payments in one transaction.

Let’s break it down.

What is a Reverse Mortgage?

A reverse mortgage is a loan that allows homeowners age 62 and older to convert part of their home’s equity into cash—without selling their home or making monthly mortgage payments.

The most common type is the Home Equity Conversion Mortgage (HECM), which is backed by the Federal Housing Administration (FHA) and regulated by the U.S. Department of Housing and Urban Development (HUD).

Key Features of a HECM:

You must be 62 or older
Your home must be your primary residence
Eligible properties include single-family homes, some condos, townhomes, and 2–4 unit buildings
Proceeds can be received as a lump sum, monthly payments, a line of credit, or a combination
No monthly mortgage payments are required, but you must stay current on taxes, insurance, and maintenance

The loan is repaid when the borrower sells the home, moves out permanently, or passes away. And thanks to FHA insurance, you (or your heirs) will never owe more than the home is worth.

What Is a HECM for Purchase?

A HECM for Purchase (H4P) lets you use a reverse mortgage to buy a new home. Instead of taking out a traditional mortgage or paying entirely in cash, you can cover around 50–60% of the purchase price with a down payment, and finance the rest with a reverse mortgage.

This Means:

One transaction for buying and financing
No monthly mortgage payments required
You keep more cash from your home sale or savings

You Still Need to:

Live in the home as your primary residence
Pay property taxes, insurance, and HOA fees (if applicable)
Complete HUD-approved counseling before applying

How Does It Work?

Here’s how a typical HECM for Purchase works:

Sell your current home (if applicable)
Use the proceeds for the down payment on your new home (typically 50–60%)
Finance the rest with a reverse mortgage
Move in—no monthly mortgage payments required

Let’s compare two options:

Scenario	Downsize	Upsize
Cash from sale	$500,000	$500,000
New home price	$400,000	$700,000
Down payment (approx.)	$236,000	$405,500
Reverse mortgage	$164,000	$294,500
Cash left over	$264,000	$94,500

Note: Actual amounts will vary depending on borrower age, interest rates, and home values.

Who Is a HECM for Purchase Right For?

This program can be a great fit if you’re:

Downsizing to a smaller, easier-to-maintain home
Upsizing to a larger home closer to family
Relocating to a retirement-friendly community
Seeking to reduce monthly costs in retirement
Looking to free up cash from your home equity

While many retirees “age in place,” studies show nearly 30% upsize in retirement. Whether you want more space or less, a HECM for Purchase gives you options.

Benefits of a HECM for Purchase:

No monthly mortgage payments
Keep more of your savings
Buy a nicer or more suitable home
Simplified process with one closing
Non-recourse loan—you or your heirs never owe more than the home’s value

What’s the Process?

Connect with a HECM for Purchase lender
Meet with a HUD-approved counselor
Get pre-approved and start shopping for a home
Sell your current home, if needed
Close on the new home—typically within 30 days

Working with a real estate agent familiar with HECM for Purchase loans is highly recommended. Your lender may be able to recommend one.

Mutual of Omaha Mortgage has specialists ready to guide you through the HECM for Purchase process. Click Here to find a loan officer near you.

Is a HECM for Purchase Right for You?

A HECM for Purchase is an innovative way to relocate in retirement while maintaining financial flexibility. It can help you:

Reduce housing costs
Free up your cash
Buy a better-fitting home
Avoid monthly mortgage payments
If you’re curious whether this option makes sense for your situation, contact a HECM for Purchase loan specialist and start exploring what’s possible.

Disclaimer: This blog is intended for educational purposes only. Please consult with a financial advisor before making any decisions regarding reverse mortgages or retirement planning.

#235: Using a reverse mortgage to finance a winter home

By: John Metcalf

May 7, 2025

STAYING PUT WHILE AVOIDING INDIANA WINTERS

A year or two ago, you had come to the decision to remain in your home rather than relocating to a nearby retirement community. However, while even the crazy weather variations of this past Indiana winter have not changed your minds about moving, you have been giving thought to owning a second, smaller home someplace south – where you can enjoy sunnier – and warmer – winter seasons.

A review of your finances shows that you do, indeed, have sufficient resources to both make a meaningful down payment on a second property, even to furnish it. An outright purchase, though, would mean overhauling your investment strategies to an uncomfortable extent.

It appears as if a HECM (Home Equity Conversion Mortgage) for Purchase might offer a solution. Backed by the Federal Housing Administration (FHA), a HECM refinance on your current residence could create enough cash proceeds to allow you to purchase your second smaller home down south.

As just one example of the extent to which a HECM for Purchase (H4P) can positively impact the transaction of a second home purchase, given current interest rates, a for a seventy-year old purchaser, the H4P could bring $263,000 towards the purchase of a $750,000 second home!

With the understanding that you must continue to occupy your Indiana property more than six months out of the year, there would be no obligation to strain your budget resources by making mandatory monthly mortgage payments.* (You’d continue to be responsible for property taxes, homeowners insurance, and home maintenance costs.)

If enjoying the “warmth” (in place of the “worst”) of winter seasons to come sounds like the retirement existence you envision for yourselves – you’re in the mindset to explore how a HECM for Purchase can help you transition into the “Snowbird scenario”!

https://mutualreverse.com/david-garrison