Jack and Diane are considering a reverse mortgage. They have been married for 40 years. They raised a family together; 3 kids and 3 grandkids with another on the way. Jack’s football dreams ended after college, but he secured a great life for his family working for the city. That career allowed Diane to stay home which was a great blessing for their family while their kids were young. When Diane turned 54, she was diagnosed with breast cancer. It was a long, painful road and they drained all their savings keeping up with the medical bills and prescription costs; thank goodness they had an ample emergency fund. Diane was able to beat the cancer, but it set Jack’s retirement date back about 5 years so they could try to recoup some of their financial losses. They are also planning on putting off collecting social security for as long as possible so they can maximize their benefit. Jack now has to work until he is 70 for them to afford their lifestyle and meet their retirement goals and Diane has taken a part-time job at their local grocery store. Working part-time allows Diane to contribute to their bottom line and they get a discount on their groceries which is an added perk of the job. She loves seeing all her friends and neighbors when they come to do their shopping and her part-time schedule allows her to be available to watch her grandkids whenever possible; she looks forward to one day having Jack with them while they play in the sprinkler and eat popsicles in the backyard.

Having a life-threatening illness really makes you appreciate each day and you learn quickly how important it is to live your life while you can. Diane doesn’t want Jack to have to continue working until he is 70. She wants them to enjoy their retirement during the time they have left and make some new memories together with their kids and grandkids in America’s heartland.

Carrying a Mortgage Balance into Retirement

Diane brought her concerns up to their financial advisor who had just attended our course on using a reverse mortgage in retirement to maximize your lifestyle and help meet goals sooner. Their financial advisor explained with a HECM reverse mortgage the amount they may qualify for is dependent upon the age of the younger spouse, the appraised value of the home, and the current interest rate; he went on explaining the reverse mortgage would pay off their current mortgage balance and set up a line of credit they could access at any time, for anything, and they would never have to make another monthly mortgage payment again.

As they considered what getting a reverse mortgage would look like for their future, they realized their mortgage balance is what was holding them back from retiring sooner than later. If that was paid off, it would change their retirement picture completely and allow them to live the retirement they had always planned on.

Their financial advisor suggested they call Jeff Foody to review their scenario and thankfully, we were able to get them approved for a HECM reverse mortgage refinance that allowed them to pay off their mortgage balance completely and open a line of credit they are planning to use to take the whole family on vacation and do some renovations on their home. Getting rid of their monthly mortgage payments with a reverse mortgage allowed them to decide how they wanted to spend their time in retirement versus being forced to chase the dollar all day just to throw it into the abyss of a mortgage that statistically many people are never actually able to pay off.

Overcoming Obstacles with a Reverse Mortgage

HECM reverse mortgages are a tool available to people aged 62+ who want to refinance or purchase a home with no monthly mortgage payments. The different goals people have in retirement can be met in a multitude of ways but many don’t consider how to eliminate the obstacles in their path that would allow them to achieve those goals possibly sooner or more easily. For those nearing or in retirement, carrying a mortgage balance can be a huge obstacle holding them back from their true potential. A reverse mortgage eliminates that obstacle. If you are 62 or older or know someone who is, it is a good idea to educate yourself about what is available to you in retirement and how those different options can work together to bolster your bottom line. We offer HECM reverse mortgages and proprietary reverse mortgages in Oregon, Washington, Idaho, and California and look forward to chatting with you and your financial advisor about the many reverse mortgage options available today, some are even made for folks as young as 55. It’s never too early to start planning your retirement.

At Northwest Reverse Mortgage, it’s all about the quality of life and we see reverse mortgages change people’s lives daily. We want you to live a more quality life in retirement and not have to work your years away. Take advantage of this time while you can and eliminate those obstacles in your path holding you back from true content. To learn more about considering a reverse mortgage, visit our other page HERE.