Reverse Mortgage SCENARIO EXAMPLE #1
- John Bosworth, Age 68
- Home Value - $450,000
- Mortgage Balance - $110,000
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 $811. Even with both Social Security income and pension, after paying for food, utilities and his mortgage payment he is short by $187 per month… "too much month at the end of his money"...
John takes out a Reverse Mortgage for $142,496, frees himself of the burden of the $811 mortgage payment and now has $624 each month extra spending money...
Reverse Mortgage SCENARIO EXAMPLE #2
- Craig Jenkins, age 82, and Sylvia Jenkins, age 79 (Reverse Mortgages are calculated using the age of the youngest home owner.)
- Home Value - $975,000
- Mortgage Balance - $0
Craig and Sylvia both take medication to stay in good health. The cost of monthly medications and treatments makes it difficult for them to find the money needed to maintain the quality of life they once enjoyed on their limited income.
They take out a Jumbo Reverse Mortgage with the option of one lump sum totaling $502,000, Tax Free. Or they choose the FHA HECM and either take out $184,000 Tax Free at close with an additional $139,000 Tax Free available in 12 months, or they can receive a monthly payment of $2.295 per month, Tax Free, for life, as long as one of them live in the home (but only until age 150 at which point the Reverse Mortgage will be called due) or leave all $323,500 available in the HECM Line of Credit, where it sits growing in value for them, regardless of their home value, until they choose to access it... or, any combination of those payment options. And, once they have a payment plan they can change that plan at any time.
Reverse Mortgage SCENARIO EXAMPLE #3
Jim and Jan Stevens put a Reverse Mortgage in place 10 years ago. Home values have grown dramatically over that period of time and they would like to improve on their current situation...
HUD allows for the Refinance of an existing FHA Reverse Mortgage as long as there is improvement to the borrower's situation by at least 5 times the refinance cost!