Margaret, a 89-year-old widow, had been referred to me by her financial adviser. She owned a $675,000 home in California that was free of any liens. Margaret had a $1 million life insurance policy that was still in effect, but she and her family were struggling financially to pay the yearly premiums. I collaborated with her financial adviser to come up with a solution. He recommended she take advantage of the HECM Line Of Credit program that allowed them initial access to over $500,000. With the line of credit growth rate compounding at approximately 4.9%, the reverse mortgage was put into place as a financial hedge and worked great until Margaret passed away 28 months later.
Accessing part of the equity in the home with the reverse mortgage line of credit allowed Margaret and her family to easily make the insurance premium payments and keep the policy in effect so that the life insurance proceeds could be passed, tax free to her estate. She also got to do some traveling abroad and visit family overseas she hadn’t seen in decades.
These are real stories about people like you who have benefited from a mortgage program designed by Marc Gertz. Only their names have been changed or omitted.