Reverse Mortgage case study 2

Welcome to 62 Babyboomers!

A 62 year old senior owns a home and is retired. They have a good income from a pension (or investment portfolio), and they are getting ready to start receiving social security. They have decided to get a reverse mortgage on their home and leave the equity of the home in a credit line on the reverse mortgage. The value of their home is $250,000

Here is what happens to their available cash line of credit.

At the time of the loan the credit line was established with $137,727

That credit line is based on the amount of cash the government will allow for that value of home without a current mortgage debt (house is paid off), and for a person of that age. Over time, this is what happens to the line of credit.

5 years : $181,389

10 years : $238,891

15 years : $314,623

20 years : $414,363

25 years : $545,722

30 years : $718,724

This is why a reverse mortgage is a senior citizen entitlement. This is guaranteed growth over time that happens no matter what happens to the value of your home.

When a senior turns 62 years old, if they get into a reverse mortgage, they are setting up a credit account that they can use at any time in their life. You don't have to go to a bank and apply for a loan. You are now the bank.

If your home goes up in value, great, that equity is yours as well. If your home goes down in value, who cares, you still are gaining asset value with the credit line. If you have an emergency, you can pull out whatever you need, whenever you need, with no transaction fee, no penalties, and no tax implications.

Bottom line....a reverse mortgage guarantees that your home grows in asset value no matter what happens to the housing market.

Still have questions?

bob

bob@az62.com

888-277-4990