A reverse mortgage loan is not for everybody, but it can be a life saver for some! Today’s reverse mortgage loans may not work for some people. They are retired, have a home that is free and clear, and they have plenty of cash and investments to meet their needs now and in the future.
But what about those families or individuals that might need just a little bit of help? Where a reverse mortgage loan could eliminate that mortgage payment, pay off some old bills, have a standby line of credit that offers comfort and a secure peace of mind.
This is especially true when one of the spouses passes, and the remaining spouse could be suddenly faced with some serious financial decisions on what to do now. Here is how we helped a recent client.
This Month’s Case Study: We recently closed a loan for a widow whose husband just unexpectedly passed away. While the husband was still alive, he was working part-time, had social security income and a few investments, so retirement life for them was relatively good. But after he passed, his widow had to face some harsh realities.
Their home was worth about $850,000 but they had a current loan of about $325,000 with a principial and interest payment of almost $3,000 per month. The remaining spouse only had Social Security income of about $2,400 a month, so every month she was going into a cash flow deficit. Eventually, she would run out of money to make the house payment, let alone have much left for any living expenses.
We at Financial Solutions Home Loans, Inc. were able to offer the widower a new reverse mortgage loan where we paid off the existing mortgage loan so she never has to make another mortgage payment again. We also gave her a small amount of cash at the closing, along with a line of credit that will actually increase in value over time. The line of credit will give her additional funds to use as the need may arise in the future.
Our company is local, we live and work here in the Coachella Valley. So, when you call Steve Davidson, you are getting the “Local Guy,” not somebody from an out of state call center.
For a free evaluation to see if a Reverse Mortgage loan is right for you, please Call Steve Davidson at (760) 980-7779 or send him an email at [email protected]
