Using a Reverse Mortgage Purchase to Downsize with Upgrades

Enhance overall net worth utilizing this to help create new dollars for

retirement

Reverse Mortgage Purchase

• Sell your home to purchase downsized home for retirement

• Put 50% down and RM remainder for no mortgage payment

• Use portion of other proceeds for tax and insurance set aside

• Create a new asset for your retirement use

The HECM Purchase

• Example—sell your $800,000 home with mortgage balance of $200,000 to create a $600,000 profit

• Purchase that $400,000 retirement home for $202,451 and no mortgage payment with the HECM Purchase instead of using $400,000

• That saves $197,549

Live For Free

• $600,000 profit from sale of home• $202,451 down payment using HECM vs

$400,000 • Using HECM you would have $397,549 left from

sale of home vs $200,000 if you paid cash for new home

• Put $150,000 in an income annuity that will guarantee to pay 5% pay out ( $7500 per year) to pay for taxes and insurance

New Asset Created

• You have just created a new asset worth $247,500 by using this approach

• $600,000 from profit of sale of existing home• $202,451 down payment using HECM• $150,000 for taxes and insurance• $247,549 left to create a new asset in

retirement• All with no monthly mortgage or tax or

insurance payments

It Adds Up

• What could you do with an extra $247,549?• Buy more Life Insurance?• Buy a vacation home ( using cash)?• Put more dollars into a no risk FIA?

• All of this without touching any of your current investments

Downsizing is Becoming Popular

• Boomers want to downsize, but want the enhancements

• Boomers are concerned about outliving their money

• Boomers want to age in place, and in style

• This can accomplish all of those goals

HECM PURCHASE

• You must have decent credit• Financial assessment is now being done to

help protect from tax default• The HECM product has quickly become a

RETIREMENT TOOL and not a LAST GAP EFFORT to stay afloat.

• The HECM Purchase is for the SAVVY SENIOR