The scenarios depicted in these scenarios are fictitious and are for example only.
Reverse Mortgage Scenario #1
- John Bosworth, Age 68
- Oregon Home Value – $250,000
- Oregon Home Equity – $210,000
- Approximate Mortgage Balance – $40,000
John is a widower who lives at home alone. He would like to keep his home, but is having trouble making payments and meeting expenses. His monthly mortgage payment is $611. Even with both Social Security income and pension, he is still short by $187 per month…
John takes out a Tax Free* Reverse Mortgage for $142,496. He takes a lump sum of $40,000 and applies it to his existing mortgage. After paying the mortgage off entirely, John’s monthly cash flow rises to $1,291. That’s $611 per month for the mortgage payment, plus another $681 from the Reverse Mortgage.
Reverse Mortgage Scenario #2
High Medical Bills
- Craig Jenkins, Age 82, and Sylvia Jenkins, Age 79 (Reverse Mortgages are calculated using the age of the youngest home owner.)
- Oregon Home Value – $375,000
- Oregon Home Equity – $375,000
Reverse Mortgage Scenario #3
- Kathy Tobias, Age 63, and Rinaldi Tobias, Age 71 (Reverse Mortgages are calculated using the age of the youngest home owner.)
- Oregon Home Value – $165,000
- Oregon Home Equity – $165,000
Kathy and Rinaldi would like to spend their retirement traveling around the U.S. in their RV, but don’t have extra money they would need to help pay for rising gas prices and other added travel expenses.
Reverse Mortgage Scenario #4
Helping with College
- Gordon Penilla, Age 62, and Joanne Penilla, Age 65 (Reverse Mortgages are calculated using the age of the youngest home owner.)
- Oregon Home Value – $850,000
- Oregon Home Equity – $850,000
Gordon and Joanne have no real debts, and their monthly income is adequate for them to live life as planned, but they would like to help out with the cost of college tuition for a grand child. For that, their income monthly and savings do not suffice.
Gordon and Joanne take out a Tax Free* Reverse Mortgage Credit Line allowing up to $265,411. Each grandparent can now bestow a monetary gift to the grandchild, the amount being that which is currently allowed by law.