We recently attended a reverse mortgage seminar held here at Spruce Creek Preserve, Dunnellon, FL 34432, presented by CenterState Bank and SouthPoint Financial Services. The discussion dispelled the myths which continue to “mis-inform” consumers of the features and benefits a reverse mortgage can offer. As an ever increasing population in the coming decade enters retirement age with modest savings and no private pension(s); borrowing against their property’s equity may be an answer to resolve ever increasing cost of living expenses.
A reverse mortgage isn’t just for someone that has a large amount of equity built up in their primary residence. Any person 62 or older making a new home purchase can also obtain a reverse mortgage. On a $300,000 home, the buyer would put $120,000 down and the balance ($180,000) would then be funded by a reverse mortgage to pay the seller the balance of the purchase price. This enables the buyer to achieve a greater purchasing power than they otherwise could afford to purchase.
Buyers that purchase additional term life insurance can provide further asset protection for estate planning purposes to offset the negative amortization effects associated with a reverse mortgage. There are other benefits that can be realized which are not mentioned here and since the reverse mortgage program under goes changes by the Federal Government, you simply must speak with an expert to get the “facts” and not the “myths” about reverse mortgages.
If you are interested in learning more about purchasing a new home or equity withdrawal from your primary residence, you should call Zena Graham, Residential Loan Officer at CenterState Bank (CSB). She knows the programs and can set up a personal appointment with you to discuss if a reverse mortgage is right for your financial situation.
CSB is a Florida based institution with local offices throughout Ocala. They offer a complete line of personal banking and mortgage lending service(s) for consumers.