Trawler
Recycles dryer sheets
Hi All,
Once DW and I get to the point we cant or don't wish to travel as much we think we might want to buy a second home and are looking at different ways to fund the project. We also have no children and do not care if we leave a financial legacy behind. Our current home is paid for and valued about $300K and we do not include this equity in our retirement nest egg. Second home purchase budget is $300K +/- $50K. So with that said we were thinking of taking out a reverse mortgage either in a lump sum or monthly income. If lump sum we would buy 2nd home with this cash. IF we take monthly income we would finance the second home with a mortgage. in both cases we would use a very small percentage of our nest egg to complete the purchase. I see it as a way to leverage one home into two. Has anyone here done this? What are your thoughts. What am I not seeing or should consider? Thanks!!
Once DW and I get to the point we cant or don't wish to travel as much we think we might want to buy a second home and are looking at different ways to fund the project. We also have no children and do not care if we leave a financial legacy behind. Our current home is paid for and valued about $300K and we do not include this equity in our retirement nest egg. Second home purchase budget is $300K +/- $50K. So with that said we were thinking of taking out a reverse mortgage either in a lump sum or monthly income. If lump sum we would buy 2nd home with this cash. IF we take monthly income we would finance the second home with a mortgage. in both cases we would use a very small percentage of our nest egg to complete the purchase. I see it as a way to leverage one home into two. Has anyone here done this? What are your thoughts. What am I not seeing or should consider? Thanks!!