Case Study 1: Living More Comfortably

With a home value of $400,000 and existing mortgage debt of $50,000, Mr. & Mrs. Jones had $350,000 of equity in their home. Based on that amount, their ages, the property appraisal value, and current interest rates, it was determined that they qualified for a $190,000 loan.

Here’s how they chose to use their funds:

• $50,000 paid off their mortgage balance, eliminating their monthly mortgage payment
• $7,000 was used for fees and closing costs, so they would have no out-of-pocket costs
• $15,000 was used to remodel their home
• $10,000 for medical care
• $1,500 to visit family
• They kept $106,500 available for future use and to draw upon from time to time.

Thanks to their reverse mortgage, Mr. & Mrs. Jones enjoyed a more comfortable retirement because they were able to cover their expenses and stay in their home.