Seniors are learning a reverse mortgage can be used to take advantage of current favorable real estate conditions to buy their retirement home
Last June, Andy and Beatrice Hollimon traveled from their Midwest home to Florida for vacation. There, they looked at a few homes to see what local real estate was available. “For about 15 years, we’d been dreaming of someday retiring in Florida,” Andy explained.
Having kept an eye on real estate trends, Andy felt that buying a property sooner would be financially advantageous due to favorable real estate market conditions. The challenge: Andy didn’t think they would be able to fully retire and make that move for another ten years.
Now May be the Time to Buy
According to CNBC, strong economic growth and low interest rates have created the perfect economic mix for a strong housing market in the first part of 2015.[i] In fact, a recent Zillow report indicated that buying a home in most markets is now more affordable than it was 15 years ago.[ii]
Like the Hollimons, many Americans nearing retirement dream of moving for better weather, to find a smaller home or to be closer to family. For Andy and Beatrice, a Home Equity Conversion Mortgage (HECM) for Purchase — a reverse mortgage loan used to purchase a home — made it possible for them to buy their dream home and retire a decade sooner than they imagined. HECM loans have provided a host of benefits for more than one million U.S.seniors who have leveraged this flexible retirement planning tool. (more…)