A reverse mortgage is for seniors 62+ that already own their own home or wish to purchase a home using a reverse mortgage. A reverse mortgage can give a senior an option to purchase or refinance a home that is different from a conventional loan. Most reverse mortgages are insured by FHA (The Federal Housing Administration) and all loan originators that offer reverse mortgages are licensed thru NMLS (National Mortgage Licensing System).
To find out if a reverse mortgage is right for you please click HERE and one of our mortgage professionals will be happy to assist you.
Here are some Reverse Mortgage Scenarios for you to review
SCENARIO EXAMPLE #1
- John Bosworth, Age 68
- Home Value – $250,000
- Home Equity – $210,000
- 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, he is still short by $187 per month…
The Solution:
John takes out a 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 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
- Current loan amount- $0
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.
The Solution:
They take out a 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 Reverse Mortgage more than covers their monthly cost for medication, and allows Craig and Sylvia more freedom with much less stress.
