Reverse Mortgage Story: From Financial Panic to Peace 

June 06, 2023
How a WMC customer went from financial panic to peace with a reverse mortgage

Reverse mortgages can bring financial stability to seniors during their retirement years. Here’s a true story of one of our customers, who was able to greatly benefit from a reverse mortgage.

The Situation: Depleting Assets 

Our client was a 74-year-old widow who had only $150,000 remaining of her $600,000 portfolio. Over the past 10 years, she depleted her stock accounts due to the loss of half of her retirement income after her husband passed away.  

Her investments were making 6% on her $600,000 portfolio (or $36,000 a year). She continued to take more than she was earning, until she was left with only $150,000 (earning only $9,000 a year).  

Had she done a Home Equity Conversion Mortgage 10 years earlier, she could have continued earning from her investments, and used the Home Equity Conversion Mortgage to plan strategically and extend the life of her retirement assets.

The Solution: Refinance to a Reverse Mortgage 

We refinanced the client’s conventional mortgage with a reverse mortgage, providing her with the cash she needed for home repairs. In addition to the cash out, we eliminated her mortgage payment and set up a line of credit so she could access her remaining lendable equity and avoid further depleting her portfolio. 

Is there someone in your life (ages 62+) who might benefit from a reverse mortgage? We offer complimentary consultations. Contact a trusted Reverse Mortgage Specialist at Waterstone Mortgage to get started.  

It’s our goal to help senior citizens create a more financially stable and secure retirement.  

These materials are not from HUD or FHA and were not approved by HUD or a government agency.

IMPORTANT INFORMATION: When the loan is due and payable, some or all of the equity in the property that is the subject of the reverse mortgage no longer belongs to borrowers, who may need to sell the home or otherwise repay the loan with interest from other proceeds. The lender may charge an origination fee, mortgage insurance premium, closing costs and servicing fees (added to the balance of the loan). The balance of the loan grows over time and the lender charges interest on the balance. A reverse mortgage may increase the principal balance of your loan and decrease the equity you may have. It is a negatively amortizing loan program.

Borrowers are responsible for paying property taxes, homeowner’s insurance, maintenance, and related taxes (which may be substantial). We do not establish an escrow account for disbursements of these payments. A set-aside account can be set up to pay taxes and insurance and may be required in some cases.

While you cannot lose your home under normal circumstances, you could be subject to foreclosure for failure to pay property taxes, homeowner’s insurance, maintenance costs and otherwise comply with the loan terms.

Borrowers must occupy home as their primary residence and pay for ongoing maintenance; otherwise the loan becomes due and payable. The loan also becomes due and payable (and the property may be subject to a tax lien, other encumbrance, or foreclosure) when the last borrower, or eligible non-borrowing surviving spouse, dies, sells the home, permanently moves out, defaults on taxes, insurance payments, or maintenance, or does not otherwise comply with the loan terms. Interest is not t ax-deductible until the loan is partially or fully repaid.