Here's a customer story about one womans reason for a reverse mortgage. I met with a young senior last week, (only 65) who completed her reverse mortgage counseling and will be able to utilize the reverse mortgage to quit her part-time job, payoff her mortgage AND spend more time with her 80+ year old mother while she still has her.
Divorced, with no children, she will use the adjustable rate reverse mortgage and access a little over $2200.00 in cash to do some home repairs. She will also payoff her existing mortgage, saving over $500 per month in cash flow, establish a line of credit of over $52,000 AND receive $500.00 per month in tax free reverse mortgage tenure payments for the rest of her life as long as she lives in the home. This will increase her cash flow by $1,000 per month, establish a growing line of credit for any emergencies, and along with her two pensions and social security, allow her to leave her part time job, spend more time with her mother and siblings, time she may never have been able to take were it not for the reverse mortgage.
With the current pricing of zero origination fee and zero servicing fee, her costs are reduced by $6,000 up front and she is able to access about $10,000 more in her line of credit than she would have in February!
I love it when a plan comes together!!
Deborah Nance
Your Local Southern California Reverse Mortgage Professional
I still don't have a good grasp of the reverse mortgage, its pros and cons. Your blog has made me curious. Thanks.
that sounds like it will work out well for her.
I may have someone who will use a reverse mortgage.
Ralph, you're not too far away for me. Please reach out if I can answer any questions for your client.
Margo, I can certainly refer you to a knowledgeable reverse originator who will answer all your questions. Especially in Florida, and the sunshine states the reverse for purchase is a great tool to help retirees afford a nice retirement home.
Now, I really am going to bed. Nite all!
Deborah, 65 is looking younger all the time. I have several clients who have enjoyed the reverse mortgage concept.
Deborah, thanks for this specific example that helps us understand how folks can use this .
Thanks for an informative posting! This is a great example of how a reverse mortgage can help someone at a specific point in their lives.
Hi Deborah,
Interesting plan for this consumer.
Btw, that 65# looks younger and younger (lol) to me too, not far from that myself. I expect to most likely get a reverse myself someday, yet not anytime soon.
I hear you Lynda...it get closer and closer all the time! But - hey! It's better than the alternative. Personally, I decided this morning to buy some glucosamine/chondrontin complex after my hip was paining me after a short 3 mile hike. What's up with that?