These are actual Reverse Mortgage customer scenarios showing how the reverse mortgage proved to be a great solution for them.

Reverse Scenario: Larry & Julie are 70 years old, owe $75,000 on their $550,000, with a $1,200 monthly payment.
They are looking for about $50,000 on a HELOC in order to remodel their kitchen.
They are living comfortably in retirement but don’t really have the savings to pay for these improvements on their own, and they don’t have a “rainy day fund” should any unexpected expenses come up.
So, the LO suggested a Home Equity Conversion Mortgage as a possible alternative for them instead of a traditional HELOC. This option would provide Larry and Julie with the following benefits:

They would qualify for a $208,000 HECM LOC after fees and expenses.
With the HECM, the first $75,000 of the LOC is used to pay off the existing mortgage, freeing up $1,200 a month for them in additional income since they are no longer required to make a monthly P&I payment on the HECM
They can then access almost $42,000 in cash at closing to be used to remodel their kitchen.

Additionally, they have another $91,000 in LOC funds that are available to them after 12 months. These funds are now available for them to create that “rainy day fund” that are available to them for any unforeseen expenses that may come up in the future
All of this is available to them without the requirement of a monthly mortgage P&I payment. (Note: The borrowers are only required to continue living in the home and pay their annual property tax and homeowners’ insurance bills)
All of this was achieved by using the HECM as part of an overall home equity financial strategy and not “just a loan” or a “transaction
If you have customers like Larry and Julie that could benefit from using a Home Equity Conversion Mortgage (reverse mortgage) to solve their financial situations, give me a call TODAY and let’s discuss how we can make this loan work for YOUR CUSTOMER! Scott Underwood has been helping seniors live an easier life in the south for 19 years. Please call (205) 908-2993 or Scott@ReverseMortgageAlabama.com.