The Reverse Mortgage Boom

I have had several requests for reverse mortgage all over the Bay Area recently. The scenario today was a gentleman aged 70 had a retirement of 400K in 2005 which is now worth 120K. He told me he was "practicing jumping from his kitchen chair". He said it jokingly but it made me wonder.

For him, the reverse mortgage is the perfect solution! New guidelines value reverse mortgages up to $625,500 and NO HIGHER (up fro $417,000). So despite his house appraising at over 1 million the property value is $625, 500 for our purposes. He wanted to get an extra $500 a month or an extra $100K credit line which he won't have to pay back unless he moves or sells the property.

When I ran the numbers I found I could get him a $95K credit line or an additional $574 a month! Nothing has to be paid until he is no longer living there or he is no longer living anywhere. With elderly people losing there ritirements and home equity a reverse mortgage is the perfect solution.

For more information on reverse mortgages email me at info@garrick.biz and I can send you an FAQ.