Scenario Examples

Judy decided to sell her large 2 story home that had a mortgage with a monthly payment of $1,826 and purchase a smaller 1 story house.

Judy listed and sold her 2 story home and after paying off her mortgage Judy received $345,000 in net proceeds. Judy found and purchased a 1 story home for $445,000 and used a Reverse for Purchase to finance $170,000 of the purchase price. Judy used $275,000 of her $345,000 she received from the sale of her home to cover the rest of the purchase.

The end result was Judy eliminated a $1,826 payment on her old home and put $70,000 in her savings account. The Reverse for Purchase allowed her to buy a home for more money than she had available in cash and now has no required mortgage payment beside her property taxes and insurance.

Todd and Mary are both required to take medication to stay in good health. The cost of monthly meds are expensive and not covered by insurance. Unfortunately when combined with increased cost of living from inflation their retirement income barley covers all their monthly expenses. This has really worried them and been a daily strain on their lives.

Todd and Mary own their home, with no mortgage and decide to access equity in their home by taking out a Reverse Mortgage line of credit totaling $328,900. The extra cash from their Reverse Mortgage line of credit  helps supplement their monthly cost for medication and other expenses, and allows them much more financial freedom with less stress. Best of all, unlike a traditional home equity line of credit,  there is no monthly payment, the line can never be frozen and loan does not have to be repaid until the home is sold in the future.