Although reverse mortgages are relatively simple, sometimes it is easiest to understand them when presented with a few examples. Keep in mind that the money available to you from a Reverse Mortgage is based on your age, the value of your home, any existing liens, the state and county in which your home is located, and market conditions.
Since each homeowner's situation will differ, however, we encourage you to contact us for a quick analysis of your needs and what you can expect from a DFC reverse mortgage.
Name - Mary
Age - 74
Home value - $290,000.
Equity - $240,000. with a mortgage balance of approx. $50,000.
Financial Need - Mary is living on a Social Security income and small pension. She is having trouble making her mortgage payments and other expenses, and certainly never has enough to enjoy her life.
Solution - A reverse mortgage for $142,000. Taking a lump sum of $50,000. to pay off her existing mortgage and the balance in monthly payments of $500.
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We have rounded off these figures for simplicity. For specifics of your situation, please contact us.
Name - James and Wilma
Age - James, 73; Wilma 69 (reverse mortgages are calculated using the youngest owners age)
Home value - $400,000.
Equity - $400,000 (no mortgage).
Financial Need - How to help pay for medical and medication expenses beyond their current income.
Solution - A reverse mortgage will provide approximately $225,000. in one lump sum or credit line or $1525. per month.
Name - Jack and Ruth
Age - Jack and Ruth are both 67
Home value - $190,000.
Equity - $190,000.
Financial Need - Jack and Ruth would like to travel more but lack the extra income needed to pay the added expenses.
Solution - A reverse mortgage of $84,000. will give them $535 per month of extra income.
Name - Ray and Jacque
Age - Jacque is 81; Ray is 79
Home value - $800,000.
Equity - $800,000.
Financial Need - Although they have a decent income, they would like to be able to give money each year to their two grandchildren.
Solution - A reverse mortgage credit line of up to $260,000. Then each grandparent can gift, each year, to each grandchild, the amount currently allowed by law. |
