Seniors are enjoying their retirement years, worry-free, by unlocking their equity with a reverse mortgage credit line
Dr. Bernie is a retired physician, 88 years old and recently widowed. He owns his home free and clear and has plenty of money in retirement savings and is living comfortably. Bernie was just looking into a reverse mortgage as a means to enhance his lifestyle.
Although he is still mobile, he knows that the time will come soon when he will have trouble getting around, so he would like to seize the opportunity to travel the world, something he always dreamed about doing in retirement years. Since the loss of his wife of 50 years, however, he says he’s having trouble getting motivated.
When I met Bernie, I explained how the reverse mortgage works and that there would be no monthly payments for as long as he lives in his home. He was delighted to learn that he could borrow money without the worry of monthly payments.
Bernie asked if he could use the stand by line of credit to pay for in-home care, if and when he needed it. I explained that the money was his, he earned it and, yes, he can do use the money however he pleases. He was relieved at this answer.
Then, I showed him that we could provide a no closing costs line of credit for $435,000. He laughed and said “What on earth would I do with all that money?” He paused for a moment and then said, “But I guess I could see treating myself to a trip throughout Europe, one last time!”
I could see Bernie suddenly regaining in lost motivation to live.
“The trip I mapped out would cost between $21,500 and $32,750.” I did not understand the vast price difference and I was worried that he might have fallen victim to an internet scam, so I asked, “Bernie, what’s the difference between a trip costing $21,500 and a trip costing $32,750?” Then Bernie replied with a new found gleam in his smile, “Well, if I spend $32,750, I’ll be going first class, but I’m not sure I deserve it.” Now that brought a gleam in my smile and then I retorted; “Bernie, for heaven’s sake, you’ve earned it. Go first class!”
I was thrilled to see that the reverse mortgage helped Bernie find his motivation for life again.
If you or your advisors want to understand the truths of a reverse mortgage, call me: a trusted advisor serving the reverse mortgage community since 1994.Questions? Contact us now!