Reverse Mortgage Scenerio #1

  • John Bosworth, Age 68
  • Home Value – $250,000
  • Home Equity – $210,000
  • Approximate Mortgage Balance – $40,000

The Challemge:

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 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.