Scenario Examples

Reverse Mortgage 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 his home in Horseshoe Bay, Tx. 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 loan for $142,496. His current mortgage of $40,000 is paid off, so the $681 per month he was paying is now available for his daily living expenses. In addition John has a line-of-credit that is growing yearly in which he can access should an unexpected expense arises.
John can stay in his home as long as he wants, and he has the available funds to travel or spend on the grandchildren.

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 in Lubbock, Tx.
  • Home Equity – $375,000
The Challenge:
Craig and Sylvia love to travel, but their retirement savings has dwindled and they don’t want to run out of money.  Their health is still very good, so they would like to take more short trips.
The Solution:
They take out a reverse mortgage with the option of one lump sum option the first year of $113,700.  They have calculated they will only need approximately $10,000 per year for the travel they desire.  The remaining money available is growing in a line of credit they can access should the need come up.  They are able to enjoy the travel to fun places without being concerned about running out of retirement savings.