Doing the Right Thing.

So, I have these clients, a cute, mature couple, who want to downsize, not so much the house, but the property. They really like this one particular neighborhood in Coeur d' Alene which is slow to turnover.

Being a good realtor as my primary intention, I sought out to talk with the folks who live there, asking if they knew of anyone who might be interested in selling. This, of course, did provoke the question, "What's my house worth?" Doing my due diligence I provided the appropriate follow up with individual CMAs for each inquiry.

Curiously, one of those houses was perfect for my clients. But, we all know that life is never that simple. The current owner is widowed, lives on her social security, has equity in the house and a small mortgage. She is in good health and the reality is that she seemed to be a perfect candidate for a reverse mortgage.

So, I spoke with a couple of people I know who could provide the necessary details. One produced an online calculator as an aid in the all important decision making process.

Basically, the lending institution pays off the existing mortgage and provides cash back to the client, either in small payments for the rest of their life or the money is put into an account that can be drawn from as needed to supplement whatever other retirement money they have coming in.

Contrary to my desire to list this ‘perfect house' for my clients, it was obvious that the best thing for this nice lady to do is to pursue the reverse mortgage option. She can stay in her home, with no mortgage payment and she will have supplemental cash available for the rest of her life.

My advice on this subject is to shop around. There are differences in cost and servicing of this financial product. In the mean time, I'll keep looking for the perfect house for my endearing clients.

Steve Miller (208)659-1476 Search for Property