Comparing Your Purchase Options
Traditional Mortgage A traditional mortgage limits the amount you have to invest up-front and lets you build equity over the life of the loan. However, the monthly principal and interest payments reduce your cash flow and could be an unwelcome financial burden. Even if you are comfortable with a monthly mortgage payment now, your financial situation may change as you age. Depending on additional monthly expenses and limited income in the future, you may tire of spending down your retirement accounts to make mortgage payments. Reverse Mortgage for Purchase
With reverse mortgage financing, monthly principal and interest payments are optional. Of course, as the homeowner, you must meet your obligations to keep current with property taxes, insurance, and maintenance. Interest accrues on the loan balance, so it increases over time, rather than decreasing if you choose not to make monthly principal and interest payments. With a reverse mortgage for purchase, you build less equity—but unlike a traditional mortgage, as the borrower, you’re never at risk of owing more than the home is worth at the time of repayment. And the flexible repayment feature gives you greater financial control.
Reverse Mortgage for Purchase
n You own the home free and clear
n Option to make a minimum down payment and limit up-front investment
n Flexible payment feature: Monthly principal and interest payments are optional* n Can give you the ability to buy the home you really want n Allows you to keep more assets and can increase cash flow
n Builds equity as you pay down the loan
*As with any mortgage, you must meet your loan obligations, keeping current with property taxes, insurance, and maintenance.
To learn more, call your local RMF loan specialist | 4
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