REVERSE MORTGAGE - REAL LIFE EXAMPLE

Betsy – St. Louis, MO

Paul and Betsy purchased their home in 1978 for $60,000. The home is currently valued at $220,000. Paul passed on 11 years ago and Betsy, at the current age of 84, has lived mainly on her own since Paul’s death. She has a mortgage balance of approximately $63,000 and credit cards with current balances of $26,000. Here is a summary of her current payments:

Mortgage                $63,000        $826 per month

Credit Cards           $26,000        $652 per month

Total                       $89,000        $1,478 per month

Betsy receives Social Security income of $1215 per month and has no other source of income. Her son and daughter give her approximately $500 per month at random times to help her with bills. Here is a summary of her current monthly household cash inflow:

Social Security        $1,215

Cash from Children  $   500

Total Cash Inflow     $1,715

After paying her debt payments, Betsy doesn’t have much left over to pay for utilities, food, transportation and other basic needs. In fact, she has been using her credit cards to keep up with paying for basic necessities and her balances keep growing. Here is a summary of the cash she has to pay for basic needs every month:

Total Cash Inflow     $1,715 per month

Debt Payments        $(1,478) per month

Total Cash Available $237 Per month

This is just not enough to survive and her situation is getting worse by the day!!

THIS IS WHAT BETSY DID TO GET FINANCIAL CONTROL OF HER LIFE BACK

Betsy received a letter in the mail and called Frontier Mortgage to ask about a Reverse Mortgage. She went through HUD counseling and, soon after, closed on a Reverse Mortgage loan with Frontier Mortgage.

This is how her life has changed:

1. She paid off her mortgage and eliminated her mortgage payment
2. She paid off her credit cards
3. She received $20,000 at the closing of her new Reverse Mortgage to pay for much needed home repairs.
4. She now receives $352 per month in cash from her Reverse Mortgage every month she is alive and in her home.
5. She no longer needs help from her children to make ends meet.

Betsy now has her Social Security income of $1,215 and receives $352 per month from her reverse mortgage as shown below:

Social Security        $1,215

Reverse Mortgage   $   352

Total                       $1,567 Per month

This is how much money she has now to pay for basic needs.

Can a reverse mortgage help you the way it helped Betsy?

Call Frontier Mortgage today to find out if it’s possible.

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