Case study for reverse mortgage – The Liddles

The Liddle’s are 62 years old, they recently sold their home for $175,000, took the equity from the sale of the home (which incidentally was about $100,000) and purchased a new home for $265,000. The nice thing for them is that they were able to purchase the new home and never, ever have to make a mortgage payment again for the rest of their lives. They used a strategic financial tool called a reverse mortgage to make up the $165,000 difference.  This government insured financial tool is literally being used by hundreds of thousands of seniors nationwide.  


Here’s why the Liddle’s did it: 

  1. No mortgage payment again, ever
  2. The new home needed to have ALL of their living needs on one level
  3. No yard maintenance or snow removal
  4. Close to family
  5. Close to medical and other civic facilities
  6. Close to folks their own age
  7. Brand new home that didn’t have deferred maintenance issues


Everyone knows that “cash is king” and monthly cash flow is a precious commodity. They now live in a new home, that’s perfect for them, and their monthly mortgage payment is now retired – forever.


With 10,000 baby boomers (possibly you, your parents or someone you know) turning 62 years old each day and according to the National Association of Realtors 41% of new homes being purchased were purchased by baby boomers. Reverse mortgages have become a popular and necessary financial home buying option.


For some of my seniors they ask, does this only work if you buy a new home? The answer is NO. You can use a reverse mortgage on your current home to either extinguish the monthly mortgage payment and potentially set up a new monthly payment that comes to you tax free. It’s up to you

Article By: Admin

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