Last month I received a call from a very nice lady who lives in Modesto, California. The call actually came from the personal banker at Citibank where she banks. Mrs. P had gone into the bank to talk about getting her line of credit refinanced.
Ten years ago she had got a home equity line of credit, also known as a HELOC.
She is currently paying $86 on a $50,000 loan balance, but in October that payment will go up to $660.
Mrs. P is on a tight budget. She receives social security and a very small pension totaling $1382 per month. There is no possible way for her to pay $660 per month and also eat.
Per personal banker, Teri, saw that she might be a great candidate for a reverse mortgage since Mrs. P doesn’t have a mortgage (only the HELOC). Together, they called me. I was able to set up a time to meet with Mrs. P and qualify her for the loan.
Here is how it went:
Income: $1386 month
Number of people in household: 1
Age: 76
Country Region: West
Property Taxes: Current
Homeowners Insurance: Yes
Property Taxes: $52/month
Homeowner’s Insurance: $100/month
Living Square Footage: 1200
Expense Account: $168 per month (This is figured by multiplying square footage by $0.14)
Late notices on accounts: none
Installment Accounts: Total owed $4865, with monthly payments of $227
Savings: None
Residual Monthly Income Required: $589
Based on this information, Mrs. P was able to qualify for the reverse mortgage.
To find out if you qualify, please call me directly at 559-994-3692 or 800-779-1851.
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