California home loans by California Freedom

There are many different ways to receive funds from a Reverse Mortgage depending on the needs and goals of the homeowner. Below are a few examples. The numbers computed in each example may vary due to changes in interest rates, estimated value of the home and the age of the youngest homeowner.

John & Mary

In this example John and Mary have decided to receive all of the reverse mortgage benefits in the form of monthly payments for life. They own their home free and clear and have very little debt. Their current monthly income is $1,100.00

With the rising cost of living, retirement and social security income are not meeting their needs. To avoid making monthly payments on a home equity line of credit or a new 1st mortgage they have chosen a reverse mortgage to supplement their retirement and social security income. John and Mary know that the monthly payments are federally insured and guaranteed for life. They are looking forward to all the benefits this additional financial security will provide.

Homeowners Ages	76 & 77
Estimated Home Value	$400,000
Net Available Benefits	$195,548
Monthly Payments for life	$1,319.28
Monthly Income before	$1,100.00
Monthly Income After	$2,419.28

Ralph & Jean

In this example Ralph and Jean have decided to receive the reverse mortgage benefits in a combination of a credit line and monthly payments. Ralph and Jean receive a combined $1,800 in retirement income.

They have decided to receive a $50,000 credit line which they will use to remodel the kitchen and bathrooms, repaint the home and have a new roof installed. Ralph and Jean have also made reservations to take a cruise while their home is being remodeled. The remaining reverse mortgage benefits will be received in monthly payments for life.

Homeowners Ages	78 & 79
Estimated Home Value	$400,000
Net Available Benefits	$215,865
Credit Line Received	$50,000
Monthly Payments For Life	$1,266.54
Monthly Income Before	$1,800.00
Monthly Income After	$3,066.54

Ron & Paula

In this example Ron and Paula have decided to receive the entire amount in reverse mortgage benefits in a credit line. Ron and Paula have a current 1st mortgage with a balance of $53,000. Their current retirement income is $1,475.00

Ron and Paula will use the reverse mortgage benefits to pay off their current 1st mortgage, eliminating their monthly mortgage payment.

Homeowners Ages	67 & 70
Estimated Home Value	$400,000
Net Available Benefits	$170,317
Credit Line Received	$170.317
Pay off 1st Mortgage	$53,000
Remaining Cash Available	$117,317