Reverse Mortgage SCENARIO EXAMPLE #1
  • John Bosworth, 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 Social Security income and a 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 cash flow is considerably improved.  He no longer has the monthly mortgage payment, and he has several hundred additional dollars a month from his reverse mortgage term advances. 

Reverse Mortgage SCENARIO #2

•    Martin, Age 70, and Maria, Age 68

•   Home Value - $350,000

•   Purchase

The Challenge:

Martin and Maria are selling their current residence and netting $200,000. Using only those funds, they want to move into a new, single-level, modern home with three bedrooms and three bathrooms with a large kitchen (they love to cook and entertain). They do not want house payments. Their real estate agent tells them there are no homes available in that price range.

The Solution:

They purchase their new home with a Reverse Mortgage for Purchase. Instead of spending all of their sale proceeds, they are able to keep some of their money and still own their new $350,000 home without monthly mortgage payments. They will only have to keep up their insurance and tax payments, plus HOA dues if any.

Reverse Mortgage SCENARIO EXAMPLE #3
  • Craig Jenkins, Age 82, and Sylvia Jenkins, 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 a monthly income of approximately $1600. The extra cash flow from their Reverse Mortgage more than covers their monthly cost for medication, and allows Craig and Sylvia more financial freedom and much less stress.
 

Reverse Mortgage SCENARIO EXAMPLE #4
  • Kathy Tobias, Age 63, and Rinaldi Tobias, Age 71 (Reverse Mortgages are calculated using the age of the youngest home owner.)
  • Home Value - $165,000
  • Home Equity - $165,000
The Challenge:
Kathy and Rinaldi would like to spend their retirement traveling around the U.S. in their RV, but don’t have the extra money they would need to help pay for gas, repairs and other travel expenses.The Solution:

They take out a Reverse Mortgage.They opt for term payments adequate for their needs.  They can use the money any way they like and it more than supplements their need for gas and RV maintenance.  

Reverse Mortgage SCENARIO EXAMPLE #5
  • Gordon Penilla, Age 62, and Joanne Penilla, Age 65 (Reverse Mortgages are calculated using the age of the youngest home owner.)
  • Home Value - $850,000
  • Home Equity - $850,000
The Challenge:

Gordon and Joanne have no real debts, and their monthly income is adequate for them to live life as planned, but they would like to help out with the cost of college tuition for a grand child. For that, their income monthly and savings do not suffice.The Solution:Gordon and Joanne take out a Reverse Mortgage Credit Line. Each grandparent can now bestow an annual monetary gift to the grandchild.

Note 1: Reverse Mortgage proceeds are based upon the current interest rates at the time the loan closes, the age of the youngest borrower, and the equity in the home. The examples above are based on an interest rate of 6.26%.

Note 2: Borrowers can lock rates in for 60 days from the date of application to the closing. All rates adjust weekly, and the rate for closing is determined by the weekly rate set on Tuesdays of each week (excluding Federal Holidays) and stay valid until the following Monday.