Reverse Mortgage SCENARIO EXAMPLE #1

  • John B. Age 68
  • Home Value - $250,000
  • Home Equity - $210,000
  • Approximate Mortgage Balance - $40,000
The Challenge:
John is a widower who lives at home alone. He would like to keep his home, but is having trouble making payments and meeting expenses. His monthly mortgage payment is $611. Even with both Social Security income and pension, he is still short by $187 per month…
The Solution:
John takes out a Reverse Mortgage for $142,496. He takes a lump sum of $40,000 and applies it to his existing mortgage and the balance in monthly payments of $681. After paying the mortgage off entirely, John’s monthly income rises to $1,291. That’s $611 per month ffrom the mortgage payment plus another $681 from the Reverse Mortgage.

Reverse Mortgage SCENARIO EXAMPLE #2

  • Jack H. (83) and Jo H. (81)
  • Home Value - $600,000
  • Home Equity - $350,000
The Challenge:
Jack is retired from law enforcement and receives a monthly pension. Jo receives social security. Both make plenty of income to cover their expenses, including their mortgage payment. However, Jack is concerned about the mortgage payment when he passes as the survivor benefit from his pension will be cut in half when that occurs.
The Solution:
They take out a $352,000 reverse mortgage which they use to pay off their existing mortgage ($265,000). The remaining portion remains on a line of credit which they can use for future expenditures. They are both happy knowing that if their income is reduced by Jack's passing that they no longer have to worry about making a mortgage payment. Jack also likes the concept of the line of credit as he knows there is extra money available should they need it and that the line of credit will grow every year if they don't.

Reverse Mortgage SCENARIO EXAMPLE #3

  • Craig J. age 82, and Sylvia J. age 79 (Reverse Mortgages are calculated using the age of the youngest home owner.)
  • Home Value - $375,000
  • Home Equity - $375,000
The Challenge:
Craig and Sylvia both take medication to stay in good health. The cost of monthly meds and treatments makes it difficult for them to find the money needed to maintain the quality of life they once enjoyed.
The Solution:
They take out a reverse mortgage with the option of one lump sum totaling $218,419, or a monthly income of $1,495. The extra cash flow from their Reverse Mortgage more than covers their monthly cost for medication, and allows Craig and Sylvia more freedom with much less stress.