Aging In Place? Jim And Shirley Were In That Place, But It Wasn’t The Place For Them…
Jim and Shirley B. saved and invested for years and had all their assets in all the right places with a trusted financial advisor.
But, with both now 75 and in great health, they just didn’t need the “big house”. So, she fixed up the old place, made it beautiful, sold it and, because Jim didn’t want to have a mortgage payment, they paid all cash to downsize into a nice new condominium.
But while they loved the new condo, they quickly realized it just wasn’t right for aging in place. Shirley said, “I told Jim right then and there, I would never again make our home perfect for somebody else!”
The only problem was, with all their investments appropriately allocated for their age, where now to get the money to prepare their condo for their later years?
At that moment, they remembered a seminar led by Richard McWhorter of Ridge Reverse almost one year prior. Maybe a Home Equity Conversion Mortgage (HECM, or more aptly called a Federally Insured Retirement Loan) was the solution to their problem.
What did Shirley say then? “I told him that we weren’t going to just make our forever condo perfect for aging in place, but we were going to make our condo beautiful!”
After a complete discovery review with Jim and Shirley, Richard determined that they were perfect candidates for a HECM Line of Credit loan. Why? Because with their financial planner’s support, and their children on board, they were quickly able to secure a HECM LOC of $300,000 on their $650,000 condominium.
Why did their financial professional jump on board the new plan? He learned what the couple already knew, the line of credit could not be called or frozen, had no personal guarantees and was the perfect vehicle for emergency (or just because) withdrawals without harming their long-term financial plan.
Oh, and it didn’t hurt that the undrawn line balance had an FHA guaranteed growth rate equal to their interest rate on the outstanding loan balance regardless of the underlying value of the home.
The happy ending? Jim and Shirley drew $100,000 of their $300,000 line, completely remodeled their condo to make it appropriate for their plans to live there forever and left the balance available to simply grow as part of their long-term financial plan.
And, it will continue to grow every year… even if the available balance grows to more than their home is worth. Talk about a hedge against the next housing slump!
Oh, and with a HECM, the loan is non-recourse which means the home is the only collateral on the loan, meaning neither they nor their heirs assets can be taken to repay the loan. It’s the only mortgage on the planet that provides that level of protection.
Success. They didn’t touch their assets appropriately placed by their financial advisor, and they utilized their equity which had been over allocated in their home to make needed improvements and begin living the rest of their lives together. All while continuing to have no required monthly mortgage obligations.
And their children? Happy for their parents to live the hard-earned life they deserve. Thankful that the home is the sole collateral and their parents would never need to ask them for emergency cash. And, knowledgeable that should their parents pass or otherwise stop using the home as their primary residence the loan options would be just like any other mortgage… Pay off the debt or, in the unlikely case the loan balance may be in excess of the value of the home, walk away… their choice without any personal liability or damage to their credit scores.
Maybe you, or someone you know, needs a similar success story but still thinks the new HUD/FHA Home Equity Conversion Mortgage is too good to be true? As with any loan product, there is always additional information to discuss. Give Richard McWhorter of Ridge Reverse a call, text (863-456-7810) or email (richard.mcwhorter@amerifund.com) and find out why what you use to think about reverse mortgages is keeping you from one of the best and safest long term financial products on the market today.
Next step?
Simply reach out to us at Ridge Reverse and let’s discuss how we can help you with a product designed specifically to meet your needs for a lifetime of happiness… while enhancing long term cashflow and quality of life. Feel free to call, text (863-456-7810), or email richard.mcwhorter@amerifund.com and find out more.
Ridge Reverse, powered by Amerifund, provides an Equal Housing Opportunity. Information is subject to change without notice. This is not an offer for extension of credit or a commitment to secure a loan. Some restrictions may apply. This material is not from HUD or FHA and has not been approved by HUD or any government agency.Richard W. McWhorter, NMLS 1618644, is an independent reverse mortgage specialist and can assist in your reverse mortgage needs in most states.. Follow him on LinkedIn, the Ridge Reverse website or contact him directly at richard.mcwhorter@amerifund.com.
