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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:

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.

Accessing Your Home Equity is Simple and Easy.

Wes Rice

Senior Loan Officer Specializing in Reverse and Forward
NMLS# 256150
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