Reverse Mortgage Loan Blog

Mortgage broker: Marty Appel, Holmgren & Associates, Oakland, CA

Property: A two-bedroom, two-bath condo in Walnut Creek

Appraised value: $360,000

Borrowing: $218,000

Loan type: Reverse mortgage

Rate: 5.56 percent, fixed

Back story: A single 72-year-old was downsizing from a larger property in Orinda. He used the proceeds from a reverse mortgage to purchase a unit in Rossmoor, a retirement community in Walnut Creek. In a reverse mortgage, which is only available to seniors, the homeowner is able to release the home equity in a property as a lump sum or multiple payments and is not obligated to repay the loan until he or she dies, the home is sold, or the owner leaves.

Because the ability to use a reverse mortgage to purchase a new home has only existed since 2009, many seniors are not aware of it. This particular borrower attended an educational forum and had done his own research.

Found here.

Bookmark It

Hide Sites