Reverse Mortgage Myth #3 My home has to be paid off to do a Reverse Mortgage.
This is false. It is true that many people who do a Reverse Mortgage have already paid their homes off and can set up a reverse mortgage using their full equity but in reality, those who are still making payments on a mortgage are likely to benefit the most from doing a Reverse Mortgage.
One of our Reverse Mortgage past clients here in St George is a great example of this, (to protect her identity I’ll call her Jane). Jane was 75 years old and a widow. She was barely getting by from month to month on what remained of her Social Security Benefit and her late husband’s retirement accounts. But with 20+ years remaining on her mortgage and a mortgage payment of more than $1,000 a month it was obvious that financially speaking Jane wasn’t going to make it much longer even though she would likely live another 15-20 years.
These are the benefits Jane experienced by doing a Reverse Mortgage:
- We eliminated her monthly mortgage payment of $1,000 for the rest of her life.
- We got her $50,000 to consolidate other debts and reduced her monthly expenses by an additional $1,200 a month.
- Jane was able to adjust her retirement accounts and begin drawing less which lets her live better, longer, and leave assets to her children.
- By freeing up $2200 in cash-flow Jane can now live free in retirement for the rest of her life and enjoy more travel, better furniture, and quality time with her family.
A HECM Reverse Mortgage has been a lifesaving opportunity for Jane and hundreds of other families in St. George and Cedar City. So many in Southern Utah don’t have to continue living on scraps while ignoring their largest asset, their home.
If you or someone you love would like more information on a HECM Reverse Mortgage Please call me today.
HECM Reverse Mortgage Specialist
Heritage Reverse Mortgage
Company NMLS# 1497455 Trevor’s NMLS # 267962
435 215 1883