In planning for Sarah’s home healthcare needs, Mike and Sarah** learned that in-home care is much more expensive than they expected. Because Medicare and health insurance rarely cover home care, the couple was left with the challenge of coming up with the money without tapping into their retirement savings.
Based on their ages (both 68) and their home’s value of $300,000, Longbridge showed them how to eliminate their $1,500 monthly mortgage payment. In addition to eliminating their mortgage, they also had the choice of receiving the remaining reverse mortgage proceeds as either:
- additional tax-free income of $953 a month that could last for the life of the loan
- a line of credit of $159,023 that was guaranteed to grow, giving them additional funds over time, or
- a lump sum payout of $91,583 to use as they saw fit.
With their reverse mortgage in place, Sarah was able to stay comfortably in the home without depleting savings – and without the worry of how to pay for healthcare. Additionally, Mike and Sarah maintained their quality of life by keeping full ownership and enjoyment of their home.
**Names changed to protect customer confidentiality.
