Homeowners example for different situations to help show how Reverse Mortgages help homeowners with different needs improve their situation!
Homeowner Example. The Challenge:
John is a Mountain Brook, AL widower who lives at home alone. He would like to keep his home, but is having trouble making payments and meeting expenses. Even with both Social Security income and pension, he is still short.
John takes out a Tax Free* Reverse Mortgage and takes takes a lump sum of $55,000 and applies it to his existing mortgage and eliminate the mortgage and the monthly payments. After paying the mortgage off entirely, John’s monthly cash flow rises to $1,691. That’s more cash per month for John to use for living expenses.
John Bosworth, Mountain Brook, Alabama Age 68
Home Value – $220,000
Approximate Mortgage Balance – $55,000
Craig Jenkins, Age 82, and Sylvia Jenkins, Age 78 Vestavia Hills, AL (Reverse Mortgages are calculated using the age of the youngest home owner.)
Home Value – $425,000
Home Equity – $0
Craig and Sylvia in Vestavia Hills, AL both take medication to stay in good health. The cost of monthly medicines 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 $274,000 which is exactly enough to eliminate their $2000 a month mortgage payment. The extra cash flow from their Reverse Mortgage eliminating their house payments more than covers their monthly cost for medication, and allows Craig and Sylvia from Vestavia more freedom with much less stress.
Kathy Tobias, Age 79, and Rinaldi Tobias, Age 77 in Trusville / Argo area (Reverse Mortgages are calculated using the age of the youngest home owner.)
Home Value – $210,000
Home Equity – $100,000
Kathy and Rinaldi retired in Trusville / Argo area Alabama 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 that provides them with Almost $400 monthly. This gives them an the extra per month which they can use any way they’d like, and more than supplements their need for gas and RV maintenance.
The Problem & The Solution: I have helped many people that weren’t happy where the were living , but didn’t think they could move. One in particular wanted to move from Clanton to Pelham to be a mile from his son and the great Birmingham Hospital network.
Homeowner example. I suggested a (HECM) Reverse Mortgage for Purchase got an older couple with health problems to move closer to Pelham, Alabama and the best hospitals and they had money from the sale of their last home to assist with retirement.
*Be sure to check with your accountant to verify current tax laws