Starting January 1, 2009 a Reverse Mortgage can be used to purchase a home. This is great news for senior homeowners that want to downsize, relocated closer to family or medical care, or move to an active adult community.
Mortgage lenders are having a harder time qualifying clients for home loans especially the senior client on a fixed income. A reverse mortgage could be the perfect loan to help your parents move. A reverse mortgage may even allow a buyer to move up to a higher price range than they anticipated and remain mortgage payment FREE with no income or credit qualifications.
As an example, Dolores, a 70-year-old woman wants to sell her home in Southern California because she is too far from her grandkids and she no longer wants to climb the stairs. Dolores sells her home and has proceeds of $200,000 from the sale. She finds a home in Northern California for $400,000 that suits her needs beautifully. Instead of getting a traditional mortgage she uses her $200,000 from the sale of her previous home and gets a Fixed Rate Reverse Mortgage loan for $200,000 to complete the sale. And that is not all! Dolores only needs to put down approximately $146,000 as a downpayment and that includes the closing costs for the loan. She can keep the additional $54,000 for herself.
Now Dolores will live in her new home for as long as she wishes without a monthly mortgage payment. When she decides to sell the home the reverse mortgage will be paid off with the sale proceeds. If the home appreciates and she sells the home for more than the balance owed on the reverse mortgage, she keeps all remaining equity.
About Jill Gromm
Jill Gromm is an experience mortgage professional providing traditional and reverse mortgages for over eight years and has spent the last three years specializing in Reverse Mortgages. Jill’s mission is to educate the senior homeowner and provide safety, security and peace of mind on every loan. She is a trusted advisor that not only works with each client through the loan process but also keeps in touch with all of her clients afterwards if they have any servicing questions.
Jill’s keys to success is to listen to her clients needs and educate them on all mortgage options to see what is in the clients’ best interest. She gives every client personal and professional service including in-home consultations.
After college, Jill worked for the California Association of Health Facilities, a non-profit association serving California’s long term care providers. Next, Jill worked as a Retirement Program Specialist for the California Public Employees’ Retirement System, CalPERS, for four years. In this position, Jill worked with city, county, and state employees to help them understand their retirement options and how they can make the most money in retirement. She gave seminars around Northern California meeting members in person and over the phone answering the retirement questions and helping them understand how to make the most money in their retirement years. Jill moved to Santa Rosa, California and became a mortgage loan agent in 2001. Jill tied her experience together when she decided to become a reverse mortgage specialist. Using her previous work experience with long term care facilities, retirement planning and now mortgage loans – this was a natural fit professionally and the most rewarding career she has experienced. To further her education, She became a Certified Senior Advisor (CSA).
Jill has had articles published in the NorthBay Biz Magazine, November 2008, issue as a reverse mortgage expert and in the Sunday, May 4, 2008, Press Democrat.
