Reverse Mortgage SCENARIO EXAMPLE # 1
- John Bosworth, Age 68
- Home Value – $250,000
- Home Equity – $210,000
- Approximate Mortgage Balance – $40,000
The ChallengeJohn 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 SolutionJohn 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.
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