Reverse mortgages can be used in many ways to increase cash flow for daily living.
Following are some examples:
A single lady came to us with about an $1100/month mortgage payment and about $1,300/month in Social Security income. This income/outgo situation clearly could not result in a balanced budget. She owed too much on the home to qualify for a Reverse Mortgage. When she received an inheritance, she was able to pay the loan balance down to where she could qualify for a reverse mortgage.
An 80 year old man was spending down his retirement accounts at a rate where the money would soon run out. He chose an option that gave him payments for 10 years that would allow him to make his retirement accounts last. After 10 years he planned to sell the home and move, but the Reverse Mortgage allowed him to live comfortably in his house for another 10 years.
A 99 year old man had a home that was free and clear, but he was reaching the end of his financial resources to pay for care and maintain the property. A Reverse Mortgage allowed him to buy a new furnace and continue to pay for private pay care so he could continue living in his home.
A 78 year old woman was referred to us because her retirement savings was being depleted such that she would be out of money in 4 years. She had a home that was free and clear. A reverse mortgage provided enough monthly income so that she would not have to deplete her investment accounts.
A 70 year old couple was depleting their investments at a rate that would leave them out of money soon. They had enough equity in their home to obtain a Reverse Mortgage that would eliminate the mortgage payment, installment debt, and credit card debt. By eliminating the debt payments, they have enough income to balance the budget and stay in their home.
A couple that had spent more than 25 years as missionaries owned a home. It was not paid off, and their missionary support was dropping. A Reverse Mortgage allowed them to eliminate the mortgage payment and continue living in the home with their available income.
I’m always happy to provide free information to help a buyer understand their options with either a conventional forward mortgage or a Reverse Mortgage. Please contact me to discover options that may be available to you.