Did you know you can use a reverse mortgage to buy a house?
I’ll give you an example.
Let’s say you are 65 years old. You want to buy a $200,000 house.
You have $110,000 to put down on the house. However, you don’t really want a mortgage payment.
You can put down your $110,000.
Get a reverse mortgage for $90,000.
…and, you will never have a mortgage payment for the remainder of your life (as long as you stay in this house).
With reverse mortgages the older you get the more loan you can get.
Here is a chart of the age of the youngest borrower vs the percentage of loan to value ratio you can borrow.
| Youngest Age | Principal Limit |
| 90+ | 0.75 |
| 89 | 0.739 |
| 88 | 0.729 |
| 87 | 0.719 |
| 86 | 0.709 |
| 85 | 0.699 |
| 84 | 0.69 |
| 83 | 0.682 |
| 82 | 0.674 |
| 81 | 0.665 |
| 80 | 0.657 |
| 79 | 0.648 |
| 78 | 0.64 |
| 77 | 0.631 |
| 76 | 0.622 |
| 75 | 0.614 |
| 74 | 0.606 |
| 73 | 0.599 |
| 72 | 0.591 |
| 71 | 0.583 |
| 70 | 0.576 |
| 69 | 0.569 |
| 68 | 0.562 |
| 67 | 0.556 |
| 66 | 0.549 |
| 65 | 0.542 |
| 64 | 0.536 |
| 63 | 0.53 |
| 62 | 0.524 |
Of course you can also get a reverse mortgage to get cash out of your existing home.
If you or someone you know needs a reverse mortgage give me a call! We are reverse mortgage experts!
That’s it for today!
Have a good day! …and thanks for reading.
Brett
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