Here is a Reverse Mortgage success story. You hear negative stories about reverse mortgages all the time. Uniformed people are quick to criticize what they don’t know or understand. But the real truth is reverse mortgages are the perfect solution for many retiring individuals.
I wanted to share with you a reverse mortgage success story involving a client of mine that closed last week. I have known this client for over 10 years. He is a realtor and his wife continues to work. They are both in their mid-70s.
Their house is paid for and has been for a number of years. The home has served them well but is starting to show its age and needed some refreshing up.
They looked at several options about how to pay for the renovations. Their savings were being depleted quickly as like most Americans today, they had failed to save enough money to last them in retirement.
Retirement in today’s world is nearly twice as long as it was 20 years ago due to advancements in medical care. That’s great news but it does tend to strain one’s finances.
My client decided against a home equity line of credit for a number of reasons. First of all, the increased burden of additional monthly payments and secondly the uncertainty of having additional funds available in the future should they needed it.
So my client decided to go with a reverse mortgage with a growing line of equity. This was the perfect loan for them. It enabled them to borrow only as much as they needed for right now which helped reduce their cost. Additionally, the reverse mortgage line of credit comes with a guaranteed growth rate.
The reverse mortgage line of credit with the guaranteed growth rate is something most people know nothing about. The way it works is that when the loan is closed the unused portion of the available principal limit is set aside in a line of credit. It also has a guaranteed growth rate added to it. In this case, my client had a $120,000 line of credit that was available to them after 12 months of having established the reverse mortgage. The line of credit grows at a guaranteed growth rate, in this case, 4.68%, so that in 10 years they would have available to them $193,000.
Unlike a traditional HELOC, the lender can never close the reverse mortgage line of credit, and the borrower can access it anytime they wish with a simple phone call. (Provided the taxes and insurance are kept current and the home is properly maintained) This provided my client with all the flexibility they needed, and the additional safety net that they can tap into 12 months after closing without having to reapply, get a new appraisal, or any additional qualification. In addition, the guaranteed growth rate is written into the loan paperwork and guaranteed regardless of the home’s value.
If you would like some information about reverse mortgages and the guaranteed growth line of credit, please give me a call at 214-945-1066 or just complete this information request below and I will send you my free reverse mortgage e-book.
Richard Woodward, NMLS 217454
Your Local, Direct, 5 Star Rated Mortgage Lender, Certified Reverse Mortgage Specialist.
Office: (214) 945-1066
mortgageprosus.com/5-star-reviews
Service First Mortgage NMLS 166487
6800 Weiskopf Ave #200, McKinney, TX 75070
Licensed by the Texas Department of Savings and Mortgage Lending (SML) Mortgage Banker Registration. Service First Mortgage is an Equal Housing Lender. This is not an offer of credit or commitment to lend. Loans are subject to buyer and property qualification. Rates and fees are subject to change without notice. The views expressed on this site are those of the individual author and do not necessarily reflect the positions, strategies or opinions of Service First Mortgage or its affiliates.
