The New Reverse Mortgage when you need a new retirement plan

I think we’re going to need a new retirement plan

Many seniors they overlook the fact that as they age so does their home, their cars and everything else they own.

When Steve and Rachel bought their home in 1990 they knew it would be their last move. Situated in a quiet senior community it had all the amenities they wanted.

Fast forward to today

Their home is now 28 years old and needs some repairs and updating. In addition they have reached that “repair or replace” point with the family car.

new retirement plan

According to the Bureau of Labor Statistics housing accounts for 33.9% of annual expenditures for those 65 and over. Transportation costs represent nearly 16% of expenditures for older Americans, while health care represents 13.4% and Steve and Rachel were facing all three without a plan that would solve these problems.

Related: Choosing the right reverse mortgage lender

Steve and Rachel’s problem: they needed a new retirement plan

Their plan was to get the work done on their home, get a new car, pay off their credit cards and have a “rainy day” fund to cover any additional living expenses that might pop up.

Even though their home was mortgage free they couldn’t access their largest financial asset, the equity in their home. Without a solution at hand they were facing the possibility of having to sell their home in order to meet other financial obligations.

Related: Debunking the #1 reverse mortgage myth

It takes more than equity to get a home loan today

The housing bubble and its bursting left us with the reality that a getting a mortgage is more difficult today and Steve and Rachel were about to get a first hand lesson.

They went to their local banker to see about an equity loan like they had done in 2005.  With their new plan in place Steve and Rachel were confident their new retirement plan would give them peace of mind for the remainder of their retirement.

But with their only sources of income being SSI and a small pension, they couldn’t meet the more stringent income and credit requirements that accompany home loans. Once again it appeared that selling their home was the only solution left to them.

Related: 25 retirement solutions using the New Reverse Mortgage

The New Reverse Mortgage to the rescue

When President Reagan created the Reverse Mortgage program in the late 1980s, he must have had Steve and Rachel in mind. While there are many ways to use the New Reverse Mortgage, paying off debt is the number one choice among seniors.

Related: Create your personal retirement paycheck

“We never realized there were so many options available with the New Reverse Mortgage” said Steve, during our first meeting. “I’m going to need some time to figure this out”.

Steve and Rachel’s new retirement plan – “We used our home to stay at home”

According to AARP, 90% of seniors want to “age in place”.  Steve and Rachel’s new retirement plan allows them to remain in their home with the peace of mind that their financial futures are secure.

Home’s value


(paid in full)

New Car

(paid in full)

Credit debt

(paid in full)

Monthly lifetime


(tax free)

Line of Credit Equity Reserve








All figures are approximate and for information purposes only

How do I know if a Reverse Mortgage is right for me?

If you’re still wondering if a Reverse Mortgage is the right solution for you but you’re not ready to sit down with one of our Reverse Mortgage Experts, then we’ll be happy to mail (or email) you Use Your Home to Stay at Home which is the official federally approved consumer booklet for those considering a reverse mortgage.

From the desk of Greg Cook; 951.265.4532​