Reverse Mortgage Story: Creating Equilibrium

November 21, 2023
How a reverse mortgage helped our clients create a balance of home equity and savings, leading to a stable retirement

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 

Our team of Reverse Mortgage Specialists (RMS) was introduced to a couple in their 80s who had made $250,000 a year during their employment years. They were living in a $2,000,000 home with a $900,000 mortgage and $200,000 in revolving and installment debt. This couple had a total of $6,000 in savings and no retirement accounts. They were “house rich” and “cash poor,” and had no way of paying for home repairs or improvements, medical bills, or other unexpected expenses.   

The spouses were becoming increasingly exhausted working long hours to maintain their income. Their goal was to slow down and enjoy life, but they had no margin to do so. They were considering selling their lifelong dream home so they could stop working. Their Realtor listened to their story and referred them to our Waterstone Mortgage RMS team to see if we could help them stay in their home and pay off their debts. 

The Solution 

We were able to refinance this couple’s conventional mortgage with a reverse mortgage, which eliminated their $5,500/month mortgage payment and paid off most of their revolving debt. The couple plans to work one more year to pay off the remaining revolving debt and to build up their savings. Then, they plan to retire and stay in the home they love!

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.