John Bosworth, Age 68
Home Value - $250,000
Home Equity - $210,000
Approximate Mortgage Balance - $40,000
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 $611. Even with both Social Security income and pension, he is still short by $187 per month…
John takes out a Tax Free* 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 for the mortgage payment, plus another $681 from the Reverse Mortgage.
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
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.
They take out a Tax Free* 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.
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
Kathy and Rinaldi would like to spend their retirement traveling around the U.S. in their RV, but don’t have extra money they would need to help pay for rising gas prices and other added travel expenses.
They take out a Tax Free* Reverse Mortgage of $82,419. This will give them an extra $519 per month which they can use any way they’d like, and more than supplements their need for gas and RV maintenance.
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
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.
Gordon and Joanne take out a Tax Free* Reverse Mortgage Credit Line allowing up to $265,411. Each grandparent can now bestow a monetary gift to the grandchild, the amount being that which is currently allowed by law.
*Be sure to check with your accountant to verify current tax laws.
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.