We Improved Our Cash Flow
Gary and Helen of Mesa, Arizona, have a home valued at $425,000 and have nearly half of it paid off. Gary spent 40 years in construction, while Helen was a nurse at a small, local hospital. Neither received a pension.
In retirement, costs are higher than they had anticipated, so money is tight, especially with monthly mortgage payments.
We’re not saddled with a $1,400 mortgage
Fortunately, they qualify for a $263,000 loan, and opt for a lump sum that discharges their remaining mortgage balance. “We’re not saddled with a $1,400-a-month mortgage payment anymore,” Helen says. “Plus, we can now afford to replace our 25-year-old kitchen appliances.”
* Stories are hypothetical and for illustrative purposes only. Each client’s situation is different, so please consult your reverse mortgage expert.