It seems to be easy for folks to learn through stories, so I thought I'd post about a client in Redlands, California who just closed on her reverse mortgage.
A younger senior, in her late 60's, Ms. B husband passed away almost 10 years ago and it's been a struggle to make it on one income. When her husband was alive, they refinanced the home to take advantage of lower rates so she was still making those mortgage payments.
She is very frugal and creative, and has come up with a good retirement strategy for her situation. Here's what she's done:
- Rents Out 2 Bedrooms - A smart woman she rents out the extra two bedrooms to other single seniors. This brings her in just over $1,000 a month. (Kind of reminds me of college roomies the way they look out for each other, yet mind their own business.)
- Reverse Mortgage - Used the reverse mortgage to pay off the existing mortgage, saving her $600 a month in payments and setting up a growing line of credit (hey! you never know, one of the renters might move out - gotta be prepared)
- Works Part Time - Supplementing her savings for when she's a "real" senior, and needs extra help.
By Deborah Nance
Your Local Southern California Reverse Mortgage Professional
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iReverse Home Loans, LLC, NMLS#810502 originates reverse mortgages in Alabama, Alaska, Arizona (MB-0919584), California, Colorado, Connecticut, Florida, Illinois, Indiana, Iowa, Kansas, Louisiana, Maryland, Massachusetts, Minnesota, Mississippi, Missouri, Nevada, New Jersey, New Mexico, Ohio, Oregon (ML-5378), Pennsylvania, South Dakota, Tennessee, Texas, Utah, Vermont (1164-MB), Virginia, Washington and Wisconsin.
Important Information: Reverse Mortgages are neither "endorsed" nor "approved" by the Federal Government. The FHA (Federal Housing Administration) provides certain insurance benefits for lenders and borrowers in connection with the lender’s HECM loans; the FHA does not make or originate loans. The owner(s) retain title to the property that is the subject of the reverse mortgage until the person sells or transfers the property and is therefore responsible for paying property taxes, insurance, maintenance and related taxes. Failing to pay these amounts or failure to maintain the condition of your property may cause the reverse mortgage loan to become due immediately. A reverse mortgage is a complex loan secured by your home. Whether such mortgage makes sense for you depends on your financial situation and needs. For these reasons, we strongly recommend that you consult with a qualified independent housing counselor, family members and other trusted advisers before making this decision. This website is not from HUD or FHA and was not approved by HUD or any government agency.