Jackson, recently retired, was looking to downsize comfortably without straining his budget. However, he had limited funds for a down payment which meant his initial mortgage payment on the new home would be much higher than he could afford.
Challenge
Jackson, a recent retiree, wanted to downsize and move into a new home. Although he owned his current home outright, he could only afford a minimal down payment on the new property. Jackson’s goal was to transition smoothly, allowing him time to settle into the new home while preparing his old one for sale. However, the monthly mortgage payment on the new home was $3,800, far exceeding his budget of $1,200.
Solution
I helped Jackson transition to his new home by arranging a recast to reduce his monthly mortgage payment without refinancing:
- Move-In to Move-Out: Facilitated Jackson’s move into the new home, so he could prep his old home for sale, ensuring we get the best value.
- Buy Down Interest Rate: We used the proceeds from the sale of his old home for a recast to lower the mortgage balance and monthly payment without refinancing, and covered all closing costs for a seamless transition.
- Closing the Deal: I ensured that all closing costs were covered, to provide a smooth transition with no additional fees.
Outcome
This customized solution enabled Jackson to downsize comfortably, secure his new home within budget, and achieve his goal of a $1,200 monthly mortgage payment, all without the hassle or expense of refinancing.