Case Study 4: Reverse Mortgage Can Provide Extra Needed Income

Problem:  A 70 year old widow has a $13,000 annual income from Social Security and pension benefits. Although this was sufficient income initially, over the years unexpected expenses have caused her to cut back on some essentials and pay for other items on credit cards. She would like to pay off her credit card bills that have grown due to her income not meeting her monthly expenses.

Solution:  With a reverse mortgage, she would be able to receive additional monthly income without incurring additional mortgage payments or putting her house on the market. Her $400,000 home could generate a total benefit of $265,908 resulting in a monthly income of $1,488.

Result:  The additional income would allow her to pay off her credit cards and have, for example, new carpet installed in her home. She would even be able to afford to visit her grandchildren across the country.