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Reverse mortgage have become quite popular among
senior citizens. There are several reasons why people
choose a reverse mortgage. Reasons vary from home
improvement to clearing off debts, from covering daily
expenses to supplementing current income. Medical
bills or long-term health care are other reasons to
get a reverse home mortgage. Let us take a look at
some live examples of reasons why people choose reverse
mortgage.
Home repairs and improvement is a popular reason
to opt for a reverse mortgage. For example, a 70-year-old
widow was waiting to get the roof of her home fixed
and her cooking area needed some patching up to give
it a better look. The woman opted for a reverse home
mortgage and got sufficient money to complete her
required repairs and improvements. Moreover, she was
left with enough money to lead a more comfortable
life with less financial worries.
Another preferred reason for a reverse mortgage is
supplemental income or extra money. For example, a
railway worker was barely able to live his life with
the little money he had left. With a reverse mortgage,
he simplified his life with an entitled payment of
$600 per month. He used the money to keep his house
and so viewed the additional income of $600 per month
as a lifesaving gift. Many clients have also reported
that they were able to go on enjoyable vacations with
the extra money they obtained from a reverse mortgage.
Many retired people who find it difficult to pay
their existing monthly living expenses prefer taking
up a reverse mortgage. For example, a 67-year-old
gentleman experienced a burden paying $1,250 per month
for his previous mortgage. He was able to relax when
he used a reverse home mortgage program to pay off
his entire debt and get enough cash to enjoy the quality
of life he always dreamt of.
A retired teacher had pursued a love of art throughout
her decades teaching. After retiring, she wanted to
create art full-time. She was invited to many art
shows around the country but they required expensive
travel. She wanted to continue to do what she loved,
but it was cutting into her savings. A reverse mortgage
paid off her existing mortgage and established a credit
line of $200,000 that grows at 6.97%.
A couple had divorced. The agreement specified he
would keep the house but split the equity with his
ex-wife. He was in Chapter 13 bankruptcy and slowly
repaying debt to his creditors. He still owed $20,000
and the debt, coupled with the divorce, was taking
a mental toll. To get back on his feet, he sold the
house and netted $300,000 for himself, which he then
used to buy a Condo. After purchasing the new place,
he opted for a Reverse mortgage and started earning
an income of $682 per month, money that will keep
coming in for the rest of his life. With the reverse
home mortgage, this 76-year-old man totally turned
around his situation and now lives with many new friends
in a community of retired people.
A self-employed lady who is 83 years young, was still
working full time at the profession she loved. Her
husband, 80, was also working full time. They owned
many homes, none of them had a mortgage. When they
approached me about a reverse mortgage, I wondered
what they had in mind to do with the $200,000. She
said “Education is very important to us, I want
to set up scholarship funds for all my grand children
and great grand children.” What a wonderful
idea to give part of your legacy away early and see
it enjoyed by others.
There are abundant examples of situations where people
have leveraged reverse mortgages to buy retirement
homes, cover medical expenses, financially aid relatives,
and pay taxes. Please contact
us if you would like to know what benefits you
might be able to receive from this program.
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