Holistic Retirement
Understand your priorities and how they affect your choices.
Retirement is a time of transition that warrants celebration, presents new opportunities, and, for
some, introduces new challenges. As you carefully plan on what to do in the coming years, be
sure to weigh the importance of utilizing your home equity as a solution.
As you explore what an ideal retirement might look like, you can gain valuable insight into the
unique goals and values that motivate your decisions about this next phase of life. Although each
situation is unique, it may be helpful to consider 4 of the more common threads
that weave us together.
SAFETY
Feel secure in knowing that you will have enough money to last your lifetime
and have the ability to live out your retirement in your own home.
CELEBRATION
Feel secure in knowing that you will have enough money to last your lifetime
and have the ability to live out your retirement in your own home.
FREEDOM
Remain financially independent and
have quick access to cash.
LEGACY
Experience the joy of witnessing your
legacy in action by providing financial
support to the people and causes you care
about now.
SAFETY
Pride in ownership and peace of mind
Overview
Alice, age 75, has owned the same home for 27 years and doesn’t plan on leaving anytime soon. She has prided herself on living within her social security income of $2,350, but she is growing concerned about the rising cost of living.
With the increased costs of necessities, a consistent increase on her property tax bill year over year, and the inevitable maintenance
that will be needed on her property, she is struggling to envision how she will continue to afford her retirement.
Reverse Mortgage as a Solution:
| Home Value | $450,000 |
| Lump Sum Paid at Closing | $40,000 |
| Starting Line of Credit | $161,255 |
| Line of Credit Growth - Year 5 | $213,488 |
| Line of Credit Growth - Year 10 | $282,640 |
| Line of Credit Growth - Year 15 | 374,191 |
The line of credit grows 0.5% above the interest rate, which increases the borrower’s
capacity to borrow more home equity over time.
Alice has consistently seen her property value appreciate over the years. She realizes that accessing
additional housing wealth while the market is up will let her unlock the equity she has earned over
time. Alice is relieved to know that she can now utilize her home’s equity whenever she needs it.
What she doesn’t use will continue to act as a growing line of credit. All of these protections allow
her to meet her immediate needs while also helping her to save additional funds for future needs
like in-home care or retrofitting her house if her mobility decreases. Alice has achieved peace of
mind and is confident she can remain independent by using a reverse mortgage as a solution for
today and for tomorrow.
Illustration is for educational purposes only and reflects an initial interest rate of 6.335% and expected interest rate of 5.125%. Closing costs
of $17,570 (allocated to $9,000 for Mortgage Insurance Premium, origination fee of $6,000, and other costs $2,445). Rate quote generated on
7/12/2022.
CELEBRATION
Living the retirement they deserve
Eliminate Monthly Payments
By using a reverse mortgage, they were
able to eliminate their monthly mortgage
payment and pay off high-interest credit
card debt. The reverse mortgage freed up
the use of their existing funds to travel and
truly celebrate their retirement without
the burden of unnecessary worry.
A Growing Travel Budget
In addition to the benefit of their carefree
travels, William and Jane were also able
to establish a line of credit through their
reverse mortgage that grows over time.
Instead of depleting emergency resources,
they are actually building their retirement
savings.
Overview
William and Jane, aged 68 and 66, retired about
two years ago. They live on their social security and
pension income. They do have some retirement
savings that they consider for emergency use
only. They like where they are living, but they
want to make the most of retirement by traveling
to see all of the places they have talked about
over the years and to visit their children scattered
across several states.
While their monthly income meets their needs,
they still have nine years of mortgage payments
left and want to start their travels now without
dipping into their emergency fund. By using a
reverse mortgage, they are able to eliminate their
monthly mortgage payment and establish a line
of credit.
Disclaimer: Illustration is for educational purposes only.
FREEDOM
A flexible retirement
Overview
James has dedicated much of his life to a fulfilling career as an ER physician. He loves his work,
but, at 64, he is ready to start a new phase of life and focus on his aspirations like traveling with
friends, pursuing hobbies, and living the adventures on his bucket list.
Although he can comfortably make the $2,300 payment on his mortgage balance of $308,000 for
the next 23 years, an early retirement could restrict his financial flexibility. Instead, he can use the
equity on his home valued at $930,000 to pursue his best retirement with a reverse mortgage.
James now has the freedom to:
- Save more by no longer having to make a mortgage payment:
- Freely pursue aspirations and interests earlier than planned.
- Use his existing housing wealth to receive a $50,000 line of credit. He can now easily plan for and participate in travel and other activities with friends.
Illustration is for educational purposes only and reflects an initial interest
rate of 6.335% and expected interest rate of 5.125%. Closing costs are
$28,880 (allocated to $18,600 for Mortgage Insurance Premium, origination
fee of $6,000, and other costs of $4,280). Rate quote was generated on
8/29/2022.
LEGACY
Seeing their legacy in action now
Leaving a Legacy
Martin and Barbara have $793,245 cash available to them at closing.
They choose to receive $250,000 as a lump sum to immediately invest
in Mike’s business and fund 3 years of Sara’s tuition and living expenses.
The remaining $543,245 will be disbursed to Martin and Barbara’s alma
mater as they desire over the next 10 years.
Overview
Martin and Barbara, both 80, have felt very fortunate throughout their lives. They own their
home and have more than enough to live comfortably in their retirement. They enjoy their time
at home, volunteer in the community, and build lasting memories with family and friends.
They adore their two grandchildren, Sara and Mike. Sara is just beginning college at their beloved
alma mater, and Mike has been struggling to get his new business off the ground. Martin and
Barbara have planned well, both for their own needs and for their heirs, but they realize how much
good their legacy could do now with a proprietary reverse mortgage
Illustration is for educational purposes only and reflects a home value of $1,850,000 with an initial interest rate of 9.74% and expected interest
rate of 9.74%. Closing costs are $17,570 ($0 for Mortgage Insurance Premium, origination fee is $0, and other costs $4,105). Rate quote generated
on 2/15/2023.
