Ever since their father’s death three years ago, your son and daughter have been urging you to move closer to your daughter’s location in eastern Indiana. Now age 73, you had envisioned remaining in your present home for the remainder of your life, but now, the idea of moving closer to the children has begun to appeal.
Although you imagine your condo, as has been the case with several of your neighbors’ homes, would sell at a very acceptable price, the proceeds would hardly be enough for you to afford a place in a very desirable 55+ community nearest your daughter’s family. Your condo mortgage was fully retired more than a decade ago, and you don’t want to take on a monthly obligation at this stage in your life.
Consider acquiring that 55+ community property using a reverse mortgage (called a HECM for Purchase, a program insured by the Federal Housing Administration). With the proceeds from the sale of your present home providing the down payment on the new, more expensive property, you could move to the new location, remaining there for the rest of your life. While you’ll be responsible for upkeep, property taxes and homeowner’s insurance, there will never be the need to make monthly mortgage payments.
Someday, if and when you decide to move or sell the new home, or upon your death, the home’s sale proceeds will be used to pay off the loan. Meanwhile, with the help of a reverse mortgage, you’ll be able to move “up” into a more expensive residence, and most important, be near your family members.