Colorado Reverse Mortgage Scenario Examples
Colorado Reverse Mortgage SCENARIO EXAMPLE #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* Colorado 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 Colorado Reverse Mortgage. He can now live comfortable in his Colorado Springs home.
Colorado Reverse Mortgage SCENARIO EXAMPLE #2
- Craig, 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
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* Colorado 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 Colorado Reverse Mortgage 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.
Colorado Reverse Mortgage SCENARIO EXAMPLE #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 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.
The Solution:
The Solution:
They take out a Tax Free* Colorado 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. Their Colorado Springs home, instead of being an anchor, has helped them reach their dream of traveling.
Colorado Reverse Mortgage SCENARIO EXAMPLE #4
- Gordon, Age 62, and Joanne, Age 65 (Reverse Mortgages are calculated using the age of the youngest home owner.)
- Home Value - $850,000
- Home Equity - $850,000
The Challenge:
Gordon and Joanne have no real debts. Their monthly income is adequate for them to live life in Fort Collins, Colorado, as they have planned. They would like to help out with the cost of college tuition for their grandchild, but their monthly income and savings are not enough to help their grandchild attend a Colorado University.
The Solution:
Gordon and Joanne take out a Tax Free* Colorado Reverse Mortgage Credit Line, allowing up to $265,411. Gordon and Joanne are happy that they can now bestow a monetary gift to their grandchild (the amount being that which is currently allowed by law).
The Solution:
Gordon and Joanne take out a Tax Free* Colorado Reverse Mortgage Credit Line, allowing up to $265,411. Gordon and Joanne are happy that they can now bestow a monetary gift to their 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: Colorado 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.
Note 3: Images are included for visual effect - they are not the actual people who took out the Colorado Reverse Mortgages
Note 3: Images are included for visual effect - they are not the actual people who took out the Colorado Reverse Mortgages
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