St. Augustine Woman's Journal - Educational Resource to the Women of St. Johns County Since 2009

By John Reardon
Reverse Mortgage Specialist Community Mortgage Solutions 

Reverse Mortgages - Retirement Income for You?


February 1, 2017 | View PDF

Reverse Mortgages were created for homeowners aged 62 and older by HUD and are insured by FHA as an "Aging in Place" loan product. Seniors are living longer and living on limited income.

The Reverse Mortgage allows access to some of the equity in a primary residence; funds are based on age and appraised value of home.

Homeowners can use these funds/ equity and they are not required to make any payments back on the loan, while alive, living in the home.

Did you know a Reverse Mortgage is a great financial tool to allow homeowner's aged 62 and older access to between 50%-70% of the appraised value of their home, based on their age, to better their Quality of Living.

The funds received do not have to be repaid back as long as the homeowners live in their homes, pay their taxes and insurance and keep the home in good condition.

The money received can be used for anything the homeowners need it for:

• Creating an emergency account

• Money to pay off their existing mortgage and get rid of their monthly mortgage payment

• Provide money for healthcare costs

• Home remodeling

• Extra money for vacations

• Extra money to eat out more each month

• To make your car payment

• To buy a vacation home

• To have extra money to spoil the grandkids with

• To have the extra money to travel and visit them


#1 A Couple Needs More Money To Live On: $250,000 home:

They are aged 70 and 69 years old. Their home appraised for $250,000 and they did

not have a mortgage on it. They can receive $132,480 (est) – out of that they received

60%/$75,580 at closing, wired into their checking account and placing 40%/$56,900 in

a Line of Credit that grows at 6.0% (est) and is available after one year.

#2 A couple wants to get rid of their monthly mortgage payment and

have more money to live on: $175,000 home:

A couple aged 69 and 68 want to pay off their current existing mortgage of $30,000,

eliminating their monthly mortgage payment of $800 – freeing up that amount each

month for them. Home appraised for $175,000 - They are getting enough to pay off

their $30,000 existing mortgage, getting $20,796 (est) at closing and placing $39,340

(est) in a Line of Credit that grows at 6.0% (est) and is available after one year.


• Couples or a homeowner always own their homes – just like a regular mortgage except no

monthly payment

• No payments are due while they continue living in their home as their primary residence

• The debt is not passed on to their heirs/children. The heirs/children can inherit the home or sell the

property to pay off the outstanding mortgage

• Taxes and insurance always have to be paid on the property and home kept in good repair to FHA standards

• New rule: Both borrowers do

Please call or email John Reardon, our local Reverse Mortgage Specialist anytime! He is always happy to answer any questions you might have.

John Reardon - Direct Phone: 904-982-2210 Office: 386-445-411

Reverse Mortgage Specialist NMLS 555210

Community Mortgage Solutions – Serving St Johns, Duval, Flagler, Nassau, Clay, Putnam, Brevard and all surrounding Counties

Regional Office: 1030 Palm Coast Parkway Suite 3, Palm Coast, Florida 32137

EMAIL: [email protected]



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