Ten years ago things were going great. The economy was great, income was great for Mr. & Mrs. Smith of San Luis Obispo, California.
Today things aren’t looking so hot. They are struggling to put food on their table and might even end up losing their home!
What changed?
The Home Equity Line of Credit (HELOC) changed. It started out as 0% interest and gradually went up. Now it is astronomical and they cannot afford their payment. Originally they had $100,000 line of credit. Their payment was a mere $162. Today, the payment has increased to $1181.
The second thing that changed is that Mr. & Mrs. Smith has now retired and is living off of their social security and pension. This is only a fraction of what they were earning 10 years ago.
Take these two factors and it puts them at risk for losing their homes in their golden years.
They do not qualify to refinance their home, nor do they want to since they are on a fixed income.
As they sat with their banker at Bank of America, the plan was to consult a reverse mortgage loan officer. Since I work directly with the banks and their clients, I received the call and scheduled a time to meet with Mr. & Mrs. Smith in their home for the next day.
Besides the line of credit, their home was free of mortgage payments. We estimated their home to be worth $425,000. Mr. & Mrs. Smith are both over the 62 age requirement. What we were going to be able to do for them is pay off their line of credit for them, and give them an additional line of credit that they could draw from for emergencies.
This suited Mr. & Mrs. Smith because as long as at least one of them is living in the home, they will never need to make any monthly payments. They will only need to pay for their homeowners insurance and property taxes.
I could see the pressure and stress ease away from their faces as their countenance changed to one of relief. They would not lose their home and could live out their golden years in the home they had planned.
To find out if you qualify for a reverse mortgage, please call me directly at 559-994-3692 or 800-779-1851.
Comments(0)