A couple in their early 70’s with a $175,000 home qualified for a lump sum reverse mortgage of $106,000 or monthly checks of $670 for life. They used $30,000 to buy a new car and some other items, and have improved their lifestyle with a monthly check of $469 from the reverse mortgage. There remained available the option of a line of credit totaling $76,000 (in lieu of the monthly check) for future use.
The “growth rate” that would apply to the unused line of credit means that they would have significantly more that $76,000 available should they need more cash in the future.
An 84 year old woman had social security income, modest savings, and a free and clear house worth $62,000. She wanted to stay in her home. She could handle her monthly expenses, but did not have cash for $3,000 of roof repairs or to visit her daughter in California. Her daughter suggested a reverse mortgage. A reverse mortgage offered her tax free funds of over $300 per month or a lump sum of over $38,000.
She chose to combine a lump sum of $3000 with a reduced monthly check of over $270.00. The additional funds will permit her to visit her daughter in California.
A couple in their late 80′s was running out of cash. “We didn’t know what we were going to do.” A friend suggested they look into getting a reverse mortgage. They qualified for a monthly check of nearly $1,100. Three years later they have the money for what they need to do and some extra for what they want to do, including home improvements.
They recently demonstrated how proud they are of their new windows and said their reverse mortgage was the best thing that ever happened to them.
A retired couple in their 60’s was looking for additional cash to pay for some recent medical expenses, minor home repairs, and to eliminate credit card bills. With a home appraised at $138,000 they qualified for a reverse mortgage line of credit of $78,350. They used an initial draw of $25,000 for the above purposes and have a remaining line of credit of almost $53,000 for future use.
