Delay Social Security Benefits:
Gloria is 62 years old homeowner
She owns her home free and clear and it’s worth $350,000
She qualifies for a reverse mortgage loan and an estimated loan of $100,605*
Instead of taking that as a lump sum, she elects to receive monthly payments of $1,000 until she turns 70 years old.
Also, Gloria will continue to have no monthly mortgage payment for as long as she lives and remains in the home.*
She can use this money for any number of things; medical costs, home repairs/remodeling, traveling, etc.
See the chart below to see how much Gloria’s monthly Social Security award amount changes by just delaying it for a few years.
By not electing for Social Security benefits at 62 and delaying until she’s 70, her monthly lifetime benefit increases from $1016 to $1789.
Reverse Mortgage Refinance- no out of pocket money
Carl is 78 years old.
Betty is 77 years old and has some chronic medical conditions that require in home care a couple of days a week.
Their home is worth $400,000 and they owe $183,797 on it and their mortgage payment is $1100 per month.
They qualify for a reverse mortgage that will pay off their existing mortgage and all loan costs. They will save $1100 per month and not have another mortgage payment on the home for as long as they live and remain in the home.*
By saving $1100 per month they are now able to spend more money on in home care visits for Betty and increase the frequency from two times a week to five times a week.
This makes them both feel more safe and secure and takes a heavy burden off the shoulders of Carl.
Reverse Mortgage Refinance- out of pocket cost
Roger is 73 and Adele is 71.
Their home is worth $700,000 but they owe $368,000 on it. Their mortgage payment is $2000 a month. They also owe $27,000 on a car with a payment of $370 per month.
They qualify for a reverse mortgage but they would need to come into closing with about $60,000 out of pocket to cover the mortgage and loan costs. This is still a good deal given their age.
They didn’t want to have to take this amount out of retirement savings so we had to be a little creative. They own a second home free and clear worth about $400,000. We suggested they take a line of credit on that home for $90,000. The monthly payment on that line of credit would be about $300. This is a fantastic solution because they could now eliminate their monthly mortgage payment on their primary residence for the rest of their lives* and pay off their car loan. This solution provides them a monthly savings of over $2000!!
Monthly SS Benefit For Life
- Monthly Benefit
- Monthly Benefit
Downsizing: Purchase a home with a reverse mortgage:
Ronald is 74 and Harriet is 69
They own a home worth $500,000 and don’t have a mortgage on it.
The home is a little too large for them and it has become difficult for them to maintain the property.
They decide to sell their existing home and purchase a condo. They find a condo they like for $350,000. They don’t want to use all of the proceeds from the sale of their existing home, for the new condo purchase so they put $200,000 down and use a reverse mortgage for the remaining $150,000. So now they have $300,000 cash from the sale of their home, a new condo, and will not have a mortgage payment for as long as they live in the condo*