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| Reverse Mortgage Questions |
Types of Reverse Mortgages |
Request an Informational Booklet |
Resources for Seniors and Their Families |
Reverse Mortgage Education & Seminars |
Learn About Reverse Mortgages |
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| Problem Solved. . . |
| . . .Opportunity Created |
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Solve A Problem |
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Avoid/get out of foreclosure |
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Pay off burdensome mortgage |
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Pay off credit card debt or back taxes |
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Home repair/safety modification |
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Remodel/update home |
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Pay large utility bills |
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Divorce buy-out |
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Purchase a car |
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Move to be near family |
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Supplement income after spouse’s death |
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Create An Opportunity |
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Purchase second home |
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LTC/single premium life insurance |
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Build an income-earning villa in Mexico |
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Start a business |
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Help a grandchild with college |
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Assist child through an economic downturn |
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Travel/buy an RV/time share |
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| Typically, we see one of two outcomes when seniors utilize a Reverse Mortgage: either they solve a problem or they create an opportunity.
A Reverse Mortgage can be a way out of trouble. Reverse Mortgages have many features, two of which are no credit qualifications and no income qualifications. Therefore, if seniors have a credit problem because they were late on their mortgage or are carrying too much debt, a Reverse Mortgage may be the perfect solution. In other situations, a Reverse Mortgage may provide them with an opportunity they would not have had, otherwise—such as utilizing the equity they’ve built up in their home in order to create an opportunity.
Below, we share with you how four of our clients have used a Reverse Mortgage to their advantage as well as how two other ways in which people commonly use a Reverse Mortgage.
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| Mount Vernon Mortgage Corporation: Some of Our Clients' Stories |
| PROBLEM: Client was in foreclosure |
SOLUTION |
RESULT |
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Client, age 67, owns a home in Western Massachusetts |
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He had a traditional mortgage for $161,000 |
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He was behind on payments and was in foreclosure |
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He had credit card debt of $25,000 |
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Home valued at $326,000 |
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Proceeds of the Reverse Mortgage were $185,000 |
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Paid off the foreclosure |
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Put $24,000 toward the credit card debt |
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Saved the home from foreclosure |
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Eliminated over $2000/month in debt payments |
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| PROBLEM: Interest Only ARM |
SOLUTION |
RESULT |
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Clients, aged 77 and 84 |
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They had an interest only Adjustable Rate Mortgage for $137,000 |
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They had credit card debt with $900 / month payments |
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Wife will lose home when husband dies |
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Home valued at $270,000 |
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Proceeds of the Reverse Mortgage were $177,000 |
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Paid off mortgage |
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Paid off the credit card debt |
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Monthly expenses reduced by $1100 |
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No fear of rate increase on the ARM |
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| OPPORTUNITY: Buy a 2nd Home in FL |
SOLUTION |
RESULT |
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Clients, age 64 |
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Wanted to be secure staying in current home, but take advantage of great opportunities in Florida to purchase condo |
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They had a small USDA mortgage for $27,000 |
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Home valued at $316,000 |
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Proceeds of the Reverse Mortgage were $188,000 |
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Paid off existing mortgage |
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Used the remaining $162,000 left to purchase a condo in Florida |
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Home on the Vineyard and condo in Florida |
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No mortgage payments on either home |
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| Other Common Uses of a Reverse Mortgage |
| SCENARIO: Move to Be Close to Family |
SOLUTION |
RESULT |
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75 year old widow in declining health, living in Florida; all of her family is in Massachusetts |
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She cannot afford a second home in MA; family members are not in a position to move to FL and are unable to add in-law suite in MA |
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Florida condo valued at $150,000 |
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Sell condo in Florida |
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HECM for Purchase to buy home in Massachusetts near family |
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Net proceeds of $140,000 from sale of condo used as down payment on purchase of $360,000 home |
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She now has the comfort of being near family |
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Family's worry is lessened because they are nearby and can help to manage any needed care |
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| SCENARIO: Fund Long Term Care (LTC) / Life Insurance Combo |
SOLUTION |
RESULT |
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65 year old couple has minimal portfolio assets, but desires to leave an estate |
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Statistically, one spouse will require LTC |
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He was behind on payments and Risk is high; estate will be depleted |
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Home valued at $300,000 |
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Use Reverse Mortgage to fund a "Shared LTC" Policy and "Second to Die" Life Policy |
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Shared LTC Policy: four years of protection for either spouse; at $4960/year, cost is 1/3 less than individual policies |
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Second to Die Life Policy: $500,000 death benefit; cost is $5580/year |
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They have provided for their future |
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They have protected their estate |
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| Remember--these are only examples and nothing beats the advice of a trusted advisor. Each homeowner's and each family's situation will be unique, so it's essential to sit down with a professional to learn what works best for you. At Mount Vernon Mortgage Corporation, we welcome family involvement as well as that of other trusted advisors, such as financial planners and estate attorneys. We want our clients to be informed and educated because any decision involoving your home is one to be made carefully. Want to learn more? We're pretty easygoing folks--contact us to set up an appointment so we can learn a little bit more about one another. |
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| Office |
781-337-2432 |
Toll Free |
1-800-869-5882 |
E-mail |
click to send e-mail |
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