Reverse Mortgage Story: Planning for a Better Retirement

September 19, 2023
How a Reverse Mortgage Line of Credit Helped a Senior Couple Achieve Financial Freedom 

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 

A couple was approaching retirement and wanted to have a plan in place for when the big day arrived. They had both worked in sales for many years and were setting aside money each month so they could have a comfortable retirement. During an annual review with their financial planner, it was recommended that the couple could exchange their current mortgage for a reverse mortgage — allowing them to build a line of credit that could be used in down markets and for unexpected expenses.

Although the couple was reluctant to consider a reverse mortgage, they agreed to have a conversation with one of our Waterstone Mortgage Reverse Mortgage Specialists (RMS) to learn about the new reverse mortgage products. During the meeting, our RMS explained that the couple could choose to make a monthly payment for their reverse mortgage, which would give them a double benefit: not only would the payment be applied to mortgage insurance, interest, and principal, but the same full amount would be added to their line of credit. This would result in a larger line of credit for a time when they might need it in the future. 

The Solution

Our RMS provided an amortization table that showed the line of credit growth rate. After fully exploring the features, benefits, and pros and cons, the couple decided to pursue a reverse mortgage, which would give them access to additional funds in the future. They now have guaranteed availability of the cash and guaranteed growth in the line of credit. 

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. 
The only reverse mortgage insured by the U.S. Federal Government is called a Home Equity Conversion Mortgage (HECM), and is only available through a Federal Housing Administration (FHA)-approved lender. Not all reverse mortgages are FHA insured. 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. A 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 you are charged interest on the balance. Borrowers are responsible for paying property taxes, homeowner’s insurance, maintenance, and related taxes (which may be substantial). There is no 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. 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 tax-deductible until the loan is partially or fully repaid.