With all of the things we do to take care of our loved ones, it’s important to have support! And, confidence in your retirement finances helps. For caregivers in retirement, a reverse mortgage helps takes away a huge worry.
The Story: David is a busy guy. Sarah, his lovely wife, and an adult child are all diagnosed with a debilitating disease. While they do receive disability income, it’s limited and David has worked hard to create security for his family and take care of them. Multiple rental properties provide income, but also maintenance needs. He knows he needs to shift gears, since at 70 he’s not going to be able to continue do all the maintenance himself. Caregivers in retirement don’t completely retire.
The Financial Challenge: David has a private loan due on one of the properties and needs funds to pay it off. Their primary residence is owned free and clear. But, they don’t wish to refinance to pay the other loan off since it will just shift the debt payment.
The Solution: Paying off this home loan note will save $1200 a month in cash flow. They can use this for in home assistance needs. And, it creates time and opportunity for David to rest. Then he can get some maintenance tasks accomplished and have a little more time with his family to enjoy. The reverse mortgage (HECM – Home Equity Conversion Mortgage) helped them pay off the balance of the private note at $293,000. They still have a total line of credit available after year 1 of $191,000. This line of credit will grow at .5% more than the interest rate of the mortgage. This is a resource when needed while not having a monthly principal and interest payment. More on FHA Reverse Mortgage.
What to Do Next: The needs of seniors Kim speaks with vary significantly. Taking time to discuss the home financing options and offer creative solutions is why David appreciated Kim’s help. Do you have questions about your home equity as a retirement resource? Give Kim Dodge a call 503.595.1600 or email her at Kim@KimDodgeReverse.com www.kimdodgereversemortgage.com
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Kim Dodge, NMLS 180699