Reverse Mortgage Scenarios
Reverse Mortgage Scenarios #1
- John, Age 68
- Home Value – $250,000
- Home Equity – $210,000
- Approximate Mortgage Balance – $40,000
The Challenge
John is a widower who lives in Colorado Springs, 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…
The Solution
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 an additional $611 per month income to pay toward the mortgage payment, plus another $681 income from the reverse mortgage. He can now live comfortably in his Colorado Springs home.
Reverse Mortgage Scenarios #2
- Craig, Age 82, and Sylvia, Age 79 (Reverse Mortgages are calculated using the age of the youngest home owner.)
- Home Value – $375,000
- Home Equity – $375,000
The Challenge
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, living in Pueblo, Colorado.
The Solution
They take out a Tax Free* reverse mortgage with the option of one lump sum, totaling $218,419 paid to them all at once, or a monthly income of $1,495 paid to them from their reverse mortgage. Any extra cash left over from their reverse mortgage after bills more than covers their monthly cost for medication, and allows Craig and Sylvia more freedom, with much less stress. They now live happily in their Pueblo, Colorado, home.
Reverse Mortgage Scenarios #3
- Kathy, Age 63, and Rinaldi, Age 71 (Reverse Mortgages are calculated using the age of the youngest home owner.)
- Home Value – $165,000
- Home Equity – $165,000
The Challenge
Although Kathy and Rinaldi live in Colorado Springs, they would like to spend their retirement traveling around the USA in their RV, but don’t have extra money they would need to help pay for rising gas prices and other added travel expenses.
The Solution
They take out a Tax Free* reverse mortgage of $82,419. This gives them an extra income of $519/month, which they can use any way they’d like. The extra cash more than supplements their need for gas and RV maintenance. Their Colorado Springs home, instead of being an anchor, has become a tool to help them reach their dream of traveling.
