Utah Reverse Mortgage – Sample Scenarios

SAMPLE SCENARIOS

Scenario 1:

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.

Scenario 2:

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.

Scenario 3:

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
Scenario 2 pie chart
Scenario 3 pie chart

Scenario 4:

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*

Is a reverse mortgage right for you? If you live in the Salt Lake area, or anywhere in Utah, we can provide you with a free in home or over the phone consultation.
Call Us Now 801.900.4835
Emal Us info@WasatchReverse.com
Our Company 11576 State St #102B Draper, UT 84020

*If you qualify and your loan is approved, a Reverse Mortgage must pay off your existing mortgage(s). With a Reverse Mortgage, no monthly mortgage payment is required. Borrowers are responsible for paying property taxes and homeowner’s insurance (which may be substantial). We do not establish an escrow account for disbursements of these payments. Borrowers must also occupy home as primary residence and pay for ongoing maintenance; otherwise the loan becomes due and payable. The loan must be paid off when the last borrower, or eligible non-borrowing surviving spouse, dies, sells the home, permanently moves out, or does not comply with the loan terms. A Reverse Mortgage increases the principal mortgage loan amount and decreases home equity (it is a negative amortization loan). These materials are not from HUD or FHA and were not approved by HUD or a government agency.