To a retirement community close to her son. She is 70 and has a home valued at 300K and has a 70K mortgage with a $520 a month payment. Rita’s current home when sold will net her 204K but the home she wants to buy is 250K with closing costs and upgrades. She is short of funds 46K so she decides not to buy. But if she gets a Reverse Morgtgage on the new home she will only have to put down 116K. Now she has $88,000 left over as a cushion and she is living without a mortgage payment. Her cash flow increase $6240 per year and she has an extra $88,000 in the bank. She now feels secure to proceed.
