JUMBO reverse mortgage helps client share legacy

“There are some reverse mortgage lenders that are allowing borrowers as young as 55 years old to obtain a reverse mortgage. With housing prices as high as they are in California, seniors are finding the program a sensible way to manage their financial affairs and to remain in their homes, enjoying a comfortable retirement.”

Mortgage advisor: Dominique Stevens.

Property type: Single-family home in Pacifica.

Loan amount: $740,000.

Interest rate: 6%.

Loan type: JUMBO Reverse Mortgage.

Backstory: Our client came to us to obtain a reverse mortgage in 2019. A retired school administrator, she was enjoying having her children and grandkids live in her comfortable Pacifica home.

Living as a multi-generational household, the cost of living was squeezing her resources, so she decided to have us help her with her first reverse mortgage. On this occasion, we were able to pay off her current “forward” mortgage, eliminating mortgage payments for the rest of her days, and also to net her approximately $35,000 in cash proceeds at closing.

Fast forward to 2022. Our client’s home in Pacifica has gained considerable value in three years’ time. She asked us to run the numbers for her, and we found that with the fixed rate JUMBO reverse mortgage, we could pay off her existing reverse mortgage, and this time to net her over $200,000 in cash proceeds.

This would allow her to make extensive upgrades to the home, have cash savings reserves, and also would allow her to help out her children, and take vacations with them enjoying her healthy and active senior years. In addition, the amortization schedule provided showed that she would still have considerable equity to leave her heirs.

There are some reverse mortgage lenders that are allowing borrowers as young as 55 years old to obtain a reverse mortgage. With housing prices as high as they are in California, seniors are finding the program a sensible way to manage their financial affairs and to remain in their homes, enjoying a comfortable retirement.

A reverse mortgage allows senior adults to halt mortgage payments forever. The program requires that the home be maintained as the primary residence. As non-taxable income, it does not affect Medicare, Social Security or pensions. Whatever equity is left after the reverse loan is paid off, goes to the heirs tax-free.

Our team has been helping seniors attain financial freedom through the reverse mortgage program for the past 16 years. Feel free to reach out with any questions that you might have, as we’re always available to help out in any way that we can.