1. Using a Reverse Mortgage Purchase
to Downsize with Upgrades
Enhance overall net worth utilizing
this to help create new dollars for
retirement

2. Reverse Mortgage Purchase
• Sell your home to purchase downsized home
for retirement
• Put 50% down and RM remainder for no
mortgage payment
• Use portion of other proceeds for tax and
insurance set aside
• Create a new asset for your retirement use

3. The HECM Purchase
• Example—sell your $800,000 home with
mortgage balance of $200,000 to create a
$600,000 profit
• Purchase that $400,000 retirement home for
$202,451 and no mortgage payment with the
HECM Purchase instead of using $400,000
• That saves $197,549

4. Live For Free
• $600,000 profit from sale of home
• $202,451 down payment using HECM vs
$400,000
• Using HECM you would have $397,549 left
from sale of home vs $200,000 if you paid
cash for new home
• Put $150,000 in an income annuity that will
guarantee to pay 5% pay out ( $7500 per year)
to pay for taxes and insurance

5. New Asset Created
• You have just created a new asset worth
$247,500 by using this approach
• $600,000 from profit of sale of existing home
• $202,451 down payment using HECM
• $150,000 for taxes and insurance
• $247,549 left to create a new asset in retirement
• All with no monthly mortgage or tax or insurance
payments

6. It Adds Up
• What could you do with an extra $247,549?
• Buy more Life Insurance?
• Buy a vacation home ( using cash)?
• Put more dollars into a no risk FIA?
• All of this without touching any of your
current investments

7. Downsizing is Becoming Popular
• Boomers want to downsize, but want the
enhancements
• Boomers are concerned about outliving their
money
• Boomers want to age in place, and in style
• This can accomplish all of those goals

8. HECM PURCHASE
• You must have decent credit
• Financial assessment is now being done to
help protect from tax default
• The HECM product has quickly become a
RETIREMENT TOOL and not a LAST GAP
EFFORT to stay afloat.
• The HECM Purchase is for the SAVVY SENIOR