Income Examples - American Mortgage Banc - Reverse Mortgage Specialist
Use a Line of Credit
or Receive Monthly Payments
REVERSE MORTGAGE CALCULATION EXAMPLES
Situation
#1
Client profile
Age - 77, and 75 ( reverse mortgages are calculated using the youngest
owners age ) Home value - $375,000.
Equity - $375,000.
Problem - How to supplement monthly income to help pay for medical
and medication expenses.
Solution - A reverse mortgage will provide $180,034. tax free* in
one lump sum or credit line or $1198. per month.
Situation #2
Client Profile
Age - 68
Home value - $165,000. · Equity - $165,000.
Problem - They would like to travel in their motor home but lack the
extra income needed to pay the added expenses of travel.
Solution - A reverse mortgage of $93,645. will give them $576.48 per
month of extra tax free* income.
Situation #3
Client profile
Age - 72
Home value - $250,000. Equity - $210,000. with a mortgage balance
of approx. $40,000.
Problem - Mary lives alone and wants to stay in her home but is having
difficulty meeting expenses. Her mortgage payment is $611. per month.
With her Social Security income and pension she is still short $187.
per month.
Solution - A tax free* reverse mortgage for $154,578. Taking a lump
sum of $40,000. to pay off her existing mortgage and the balance in
monthly payments of $739.89. After paying off the mortgage, Mary's monthly
income rises to $1350.89. ($611. mtg. paym't plus $739.89 from the reverse
mortgage).
