Senior Equity Financial, Inc.

Case Studies

> Lump Sum

The clients: A married couple who recently retired and were living off of their social security, pension, and investments. They owned a home worth about $350,000 dollars, with a $110,000 mortgage, on which they were paying $1,200 month.

The goal: To purchase a condo in Myrtle Beach, without liquidating investments, which would have created an income tax liability.

How we helped: We recommended the couple take out a reverse mortgage with a lump sum payout. After qualifying for a lump sum payout of $210,000, they paid off the current mortgage on their home, eliminating their $1,200 monthly payment. They then used the remaining $100,000 as a down payment toward a condo and took out a small mortgage for the remaining purchase.

The result: By taking out a reverse mortgage with a lump sum payout, the couple was able to purchase their second home, while leaving their investments intact and lowering their monthly payments.

Other clients have used a lump sum to pay off outstanding bills, eliminate monthly payments, or make home repairs.

Keep in mind: It is important to remember interest will start accruing on the monies the day you borrow them, so a lump sum only makes sense if there is an immediate use for the money.

If you’re interested in learning more about reverse mortgages, Senior Equity Financial has the experience to help you understand the options and find the reverse mortgage that’s specifically tailored to fit your financial needs.

With Senior Equity Financial, your needs come first. Just call us at (800) 261-8507.