After more than 35 years in residential real estate, Donna knew what she enjoyed about the business. Meeting people, helping them find a home, and getting a transaction across the finish line were still rewarding. What was wearing her down was the financial pressure that followed her home.
She’d refinanced her own house to help buy rental properties. The idea had merit, but the rental income wasn’t consistently covering the new mortgage payments. A quieter month in real estate could leave her worrying about how to make the pieces fit.
She wanted the freedom to slow down a little. Instead, the mortgage kept giving her another reason she couldn’t. A trusted friend suggested she call Richard, and he took a fresh look at the situation.
The answer involved more than changing the loan
Donna’s solution began with selling one rental property. She used part of the proceeds, together with a Home Equity Conversion Mortgage, or HECM, to pay off the existing mortgage on her primary residence. That combination gave her enough to make the change.
It’s an important part of her story. The reverse mortgage worked alongside a decision about her investments. Richard looked at what she owned, what was creating pressure, and what she wanted her working life to feel like. The goal was a more comfortable way to keep doing work she liked.
With the old mortgage on her primary residence paid off, Donna no longer had its required monthly principal and interest payment. The HECM gave her a different payment structure, with no required monthly principal and interest payment while she met the loan terms. She still owned her home, and her taxes, insurance and other property expenses remained part of her budget.
A good month could be a good month again
Donna stayed active in real estate. But the decision to work no longer carried the same pressure from that old mortgage payment. She could enjoy the people and the work that had drawn her into the business in the first place.
She also liked having a choice about payments. When she closed a transaction and wanted to reduce the HECM balance, she made a voluntary payment. During a month without a closing, she could leave that payment out and keep cash available for other needs.
That flexibility is easy to overlook. A reverse mortgage doesn’t prevent you from paying down the loan. It gives you room to decide when a voluntary payment fits your circumstances. For someone whose income arrives unevenly, that can be a meaningful change. With her HECM line of credit, voluntary payments also rebuild available credit dollar for dollar, giving her the flexibility to borrow again later.
What would a little breathing room change for you
You don’t have to be a Realtor to recognize Donna’s situation. Perhaps you still enjoy working, but a mortgage payment makes every slow month uncomfortable. Maybe retirement is close enough to picture, yet the monthly numbers keep pushing it farther away. Or you’d simply like to reduce the pressure to earn a certain amount every month.
For eligible homeowners age 62 or older, a HECM may be able to replace an existing mortgage. The existing loan must be paid off at closing, and sometimes additional cash is needed, as it was for Donna. Richard will start by seeing what the numbers allow and whether the change would help you.
He will also talk about costs and the future. Interest and mortgage insurance are added to the outstanding balance, so it can grow when you aren’t making payments. You’ll continue to live in the home as your primary residence, maintain it, and pay taxes, insurance and applicable association charges. Required independent counseling gives you another opportunity to ask questions before proceeding.
Donna’s experience shows how a change in financing can support a change in pace. If you’d like to work because you enjoy it and feel less pressure from your mortgage, he can help you take a closer look. Call or text Richard at 404-313-9785, or email richard.mcwhorter@ridgereverse.com.
Richard W. McWhorter, NMLS 1618644. Ridge Reverse, powered by Amerifund. Equal Housing Opportunity. Information is subject to change. This isn’t an offer of credit or a commitment to secure a loan. Eligibility and terms vary. This material isn’t from HUD or FHA and hasn’t been approved by any government agency.