Bill and Karen lived in a very nice home in a good neighborhood.
The kids grew up and moved away, but not too far away. Close enough to be helpful when Bill and Karen needed help, but far enough so that no one got in the other’s way. They saw no need to ever move away from their home.
Some years ago, the couple used a Reverse Mortgage to provide the funds to renovate the old place. A new kitchen and bathrooms, carpet, paint and a new heater/air conditioning system. The place fit their needs so well.
Peace of Mind
Bill was somewhat older than Karen. They spoke of what would happen when and if Bill passed away before Karen. They concluded that taking some more money with a Reverse Mortgage Refinance would make sense. Karen would have the peace of mind if cash was immediately available, assuming she needed the money.
They consulted with their C.P.A. who helped them research the facts, such as increase in market value of the home since the first Reverse Mortgage and costs to refinance. They chose to refinance the original Reverse Mortgage with a new Reverse Mortgage.
1- Obtained an additional $50,000 to use as they wished.
2- No monthly mortgage payment.
3- Peace of mind knowing the cash was immediately available for emergencies.