It’s one thing to study and read about reverse mortgages, and another to see the process in front of you in plain terms. Here are a few example scenarios that illustrate how a reverse mortgage can be the right choice. Contact us to learn about these examples, as well as the reverse mortgage requirements that help you decide if a reverse mortgage is right for you.
The following are hypothetical examples for illustration only.
John Bosworth, 72, is a widower living alone. Like many seniors, he finds it difficult to keep up with all his expenses. He has a pension and Social Security income each month, but still finds things tight.
John completes the process for a tax-free* reverse mortgage. He receives his money as a lump sum and uses it to pay off his current home mortgage. With the extra cash each month from eliminating that payment, he can comfortably afford his bills and living expenses.
Craig Jenkins is 82 and his wife Sylvia is 79. (Because reverse mortgages are based on the youngest homeowner, Sylvia’s age is used.) Both take medication, and it’s sometimes difficult to cover the cost of the quality of life they want.
Craig and Sylvia obtain a tax-free* reverse mortgage and choose the lump-sum option, using the proceeds for medications and other important senior healthcare costs. The result is more financial freedom and less stress.
Kathy Tobias, 63, and Rinaldi Tobias, 71, would like to travel the United States in their RV, but don’t have the extra money in retirement — gas and travel costs are too high.
Kathy and Rinaldi get a tax-free* reverse mortgage, based on Kathy’s age since she is younger, giving them the extra monthly cash flow to cover gas and RV maintenance.
Gordon Penilla, 62, and Joanne Penilla, 65, have no major debts and adequate monthly income. But they’d like to help with a grandchild’s college tuition and need additional funds to do it.
Gordon and Joanne obtain a tax-free* reverse mortgage line of equity, allowing each grandparent to make a monetary gift to their grandchild. The amount each can gift is determined by current law.
For a customized reverse mortgage solution and to learn about reverse mortgage requirements, contact us today. At Citizens Lending Group, we help seniors achieve their financial goals with solutions built around their needs.
* Be sure to check with your accountant to verify current tax laws and reverse mortgage tax implications.
Note: Proceeds are based on the age of the youngest homeowner, current interest rates, and the amount of home equity. Rates can be locked for 60 days, measured from the application date to closing; rates adjust each Tuesday (except federal holidays) and are valid until the following Monday.
