|
|
- REVERSE MORTGAGE EXAMPLES
Reverse Mortgages CASE STUDY #1
Client profile - William and Betty Senior
- · Age - William 77, Betty 75 ( reverse
mortgages are calculated using the youngest owners age )
- · Home value - $375,000.
- · Equity - $375,000.
- · Problem - How to supplement monthly
income to help pay for medical and medication expenses.
- · Solution - A reverse mortgage will provide
$218,419. tax free* in one lump sum or credit line or $1495. per month.
Reverse Mortgages CASE STUDY #2
Client Profile - Charles and Judy Pleasant
- · Age - Charles and Judy are both 68
- · Home value - $165,000.
- · Equity - $165,000.
- · Problem - They would like to travel
in their motor home but lack the extra income needed to pay the added
expenses of travel.
- · Solution - A reverse mortgage of
$82,419. will give them $519 per month of extra tax free* income.
Reverse Mortgages CASE STUDY #3
Client profile - Mary S. Citizen.
- · Age - 72
- · Home value - $250,000.
- · Equity - $210,000. with a mortgage
balance of approx. $40,000.
- · Problem - Mary lives alone and wants
to stay in her home but is having difficulty meeting expenses. Her
mortgage payment is $611. per month. With her Social Security income and
pension she is still short $187. per month.
- · Solution - A tax free* reverse
mortgage for $129,138. Taking a lump sum of $40,000. to pay off her
existing mortgage and the balance in monthly payments of $561. After
paying off the mortgage, Mary's monthly income rises to $1172. ($611.
mtg. paym't plus $561 from the reverse mortgage).
Reverse Mortgages CASE STUDY #4
Client Profile - John and Joanne Smiles
- · Age - John is 82 and Joanne is 80
- · Home value - $850,000.
- · Equity - $850,000.
- · Problem - Their income is sufficient
to live as planned but they would like to assist with the college
tuition for their two grand children.
- · Solution - A reverse mortgage credit
line of up to $265,411. Then each grandparent can gift, each year, to
each grandchild, the amount currently allowed by law*. Income from a
reverse mortgage is currently tax free*.
* Please check with your accountant to verify current tax laws.
Note: Reverse Mortgage proceeds are based upon the current interest
rates at the time the loan closes, age of the youngest borrower and
equity in the home. The above examples are based upon the rates on
3/21/2006 of 6.26%. All reverse mortgages have adjustable rates.
** NOTE: BORROWERS CAN LOCK IN RATE FOR 60 DAYS FROM THE DATE OF
APPLICATION TO THE CLOSING. ALL RATES ADJUST WEEKLY AND THE RATE FOR
CLOSING IS DETERMINED BY THE WEEKLY RATE SET ON TUESDAYS OF EACH WEEK
(EXCEPT FOR FEDERAL HOLIDAYS) AND ARE VALID THROUGH THE FOLLOWING
MONDAY.
 Funding Seniors is a NATIONWIDE LENDER
Copyright
© 2003-2008 Funding Seniors. All Rights Reserved.
|
