Scenario Examples


Reverse Mortgage SCENARIO EXAMPLE #1
  • Gary Sheldon, Age 62, and Mary Sheldon, Age 65 (Reverse Mortgages are calculated using the age of the youngest home owner.)
  • Home Value – $850,000
  • Home Equity – $50,000
The Challenge:
Mr. and Mrs. Sheldon have a small mortgage compared to the value of their home.  Their monthly income is inadequate for them to pay their real estate taxes which are $15,000 a year.  Due to the high costs of living in their county the Sheldon's have almost $65,000 in credit card debt.  The minimum payments alone costs them $1,250. 

The Solution:

The Sheldon's take out a Tax Free* Reverse Mortgage Lump Sum of $366,646. After paying off their mortgage and credit cards they are left with 251,646 and no longer have to pay $1,250 a month in credit card payments.  That $1,250 a month savings will now put them in a better position to pay the real estate taxes.   

Reverse Mortgage SCENARIO EXAMPLE #2

  • John Albanese, Age 68
  • Home Value – $250,000 
  • Approximate Mortgage Balance – $40,000
The Challenge:
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 Tax Free* Reverse Mortgage for $142,496. He pays off his mortgage and saves $681 in mortgage payments. John’s elects a tenure option of $681 a month from the proceeds of the Reverse Mortgage.  He will now receive $681 a month guaranteed for life with a reverse mortgage. 

Reverse Mortgage SCENARIO EXAMPLE #3
  • Craig Woodruff, Age 82, and Sylvia Woodruff, Age 79 (Reverse Mortgages are calculated using the age of the youngest home owner.)
  • Home Value – $375,000
  • Mortgage Balance- $0
The Challenge:
Craig and Sylvia both take medication to stay in good health. The cost of monthly medicine and treatments makes it difficult for them to find the money needed to maintain the quality of life they once enjoyed.
The Solution:
The Woodruff's take out a Tax Free* Reverse Mortgage which has a line of credit  totaling approximately $218,419. 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.

Reverse Mortgage SCENARIO EXAMPLE #4
  • Karen Marvos, Age 63, and John Marvos, Age 71 (Reverse Mortgages are calculated using the age of the youngest home owner.)
  • Home Value – $500,000
  • Home Equity – $200,000
The Challenge:
Kathy and John would like to spend their retirement traveling around the U.S. in their RV, but don’t have extra money they need because of large monthly mortgage payments

The Solution:

They take out a Tax Free* Reverse Mortgage completely eliminating their current mortgage payments. After paying off their mortgage in full they will have additional $40,000 they can access in a lump sum to help them travel.  


*Be sure to check with your accountant to verify current tax laws.
Note 1: 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%. Homeowners are still responsible to maintain home and pay property taxes and homeowners insurance.
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.