We Eliminated High Interest Debt
Kim and David from Round Lake, Illinois were looking to consolidate some high-interest debt and improve their monthly cash-flow. Their charming colonial was valued at nearly $325,000 and they had built substantial equity over the years as they raised their family in it. Even though their remaining mortgage balance was small, combined with $35,000 in high-interest credit card debt and nearly $6,000 a year in property taxes and homeowners insurance, David and Kim were finding money a little tight. Especially now that David retired (at age 62) and was trying to delay collecting his Social Security benefit for a few years.
Using a reverse mortgage to access their home equity, Kim and David were able to eliminate their existing mortgage and credit card debt. They also set-aside the funds to cover their property tax and insurance payments now and in the future.
We paid off $35,000
of credit card debt
In total, their reverse mortgage improved their monthly cash-flow by $1,300. Now instead of worrying about finances at the end of every month, Kim and David were free to enjoy their retirement together.
* Stories are hypothetical and for illustrative purposes only. Each client’s situation is different, so please consult your reverse mortgage expert.