She is 70 In a couple years she plans on selling her house to peruse her dream but she still wants to continue working for the next couple of years in the city. Her Realtor finds her the perfect house on the beach, purchase price 275K but it is too far to drive to the city each day. She calls her sister, the mortgage broker, and talks about different ways to finance the house without selling the city house. She owes 50K on the house and has $575 payment. She learns she can do traditional cash out refinance to pull out some cash to finance her retirement house but now she has two mortgage payments and the one on her city home is much higher.
With a Reverse Mortgage on her city home, she can get 92K out after paying off her existing mortgage. She can use that as a down payment on her beach home. She no longer has her $575 payment on her city home and has a 183K mortgage on her second home with a payment of $982 per month. She now has two properties with a total of $982 in mortgage payments and she goes to the beach every weekend.
