Reverse Mortgage SCENARIO EXAMPLE #1
- John Bosworth, Age 68
- Home Value – $300,000
- Home Equity – $260,000
- Approximate Mortgage Balance – $40,000
John is a widower who lives 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, his monthly net income is just $389…
John takes out a Reverse Mortgage for $142,200. He pays off his $40,000 mortgage and eliminates the monthly mortgage payment of $611 and takes a monthly tenure payment (for as long as he lives in his home) of $456. The Reverse Mortgage will increase John’s monthly income to $1,456.
Reverse Mortgage SCENARIO EXAMPLE #2
- Craig Jenkins, 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
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.
They take out a reverse mortgage with a total sum of $187,000 available (max of $105,700 during the 1st 12 months) or a monthly income of $1,205 for as long as either one of them live in their home. The extra cash flow from their Reverse Mortgage more than covers their monthly cost for medication, and allows Craig and Sylvia more freedom with much less stress.