Reverse Mortgage Specialist Says You Don't Have Enough Equity.

Many people call me and find out that they don't have enough equity in their home, either because of falling home prices or a large mortgage, to obtain a Reverse Mortgage without having to bring some cash to the table. While they qualify (older than 61 and homeowner) they will have to reduce their mortgage before being able to complete the Reverse Mortgage. I want to share with you a situation that will illustrate how a Reverse Mortgage and a retirement account can work together to a greater benefit.

People often wouldn't even consider their other retirement account and how it could even become a bigger benefit than it already is by "merging" it with a Reverse Mortgage.

Lets look at a situation where a couple has a monthly payment of $1,800 on a $180,000 mortgage. Due to the value of their home going down in value they need to bring around $50,000 in cash to close the loan.

So lets look at what happens when the client takes $50,000 of retirement cash flow and puts it into a Reverse Mortgage. They no longer have a monthly mortgage payment resulting it their cash flow increasing immediately by $1,800. To make up the $50,000 of cash flow they spent it will take 2.3 years of an extra monthly cash flow of $1,800 (not taking into account the interest minus the taxes of the retirement account)to make up the $50,000 and at that point no more monthy mortgage payments as long as they live in the home.

Leaving it the way it is, you have the $50,000 but you will be paying the mortgage for at least the next 10 years which equals about $216,000.

These are just rough numbers and there are other factors to take into consideration, so give me a call and we can run the numbers and decide which route makes the most sense as you chart your financial future.

Troy Freesemann
(866) 800-0280
www.reversemortgageloans-rates.com

www.mireverse.com