Lynn and Mary loved their home.
It was everything they ever wanted. Both worked hard and had a lot to show for it. Now they were retired and enjoyed their three grandkids immensely. It didn’t take long for the little ones to grow up. They started families of their own.
“Young folks have it so hard today, When we were getting started, there were jobs galore and we got to keep most of the money we earned. Today, taxes are high and good jobs are scarce,” Lynn used to say. Lynn and Mary talked it over and decided they would figure out a way to get some money to their young progeny somehow. It seemed so tragic to wait for their own demise to put at least a portion of the inheritance into the hands of the grandchildren.
Their biggest asset was the home.
Lynn and Mary did not want to refinance and make larger mortgage payments. Their retirement income did not allow them that possibility. Lots of equity and not so much monthly income. They felt stuck.
They consulted their longtime Financial Planner. A Reverse Mortgage solved the problem. They borrowed money by using the equity in their biggest asset – their home.
1- All three grandchildren got the money to make the down payment on a home they would not have been able to purchase otherwise.
2- No mortgage payment for Lynn and Mary. Not even on the original mortgage, since it was paid off with the Reverse Mortgage Refinance.
3- Still substantial equity in Lynn and Mary’s home, where they wanted to live.