Fulfilling a Dream with a Reverse Mortgage for one Retired Teacher
Typically, the vast majority of people associate a reverse mortgage with someone needing financial assistance to cover the increasing costs of medications, groceries and home maintenance. However, Mr. and Mrs. Taylor, a retired couple, used the proceeds from their reverse mortgage for the unique purpose of fulfilling a dream.
Both retired public school teachers, the Taylors raised two kids of their own and put them both through college, all the while saving adequately for their retirement. Their annual income consists of their pension from the county school system, social security benefits, and income from other investments such as their retirement plans.
While they lived a comfortable retirement lifestyle, their dream of owning a vacation home was not something they thought they could afford. Mr. and Mrs. Taylor heard about the reverse mortgage program and decided to investigate further. They contacted Robert Ready of East West Mortgage Company, which deals primarily in reverse mortgages. After meeting with him, their life-style dramatically changed.
The Taylors decided to use the proceeds from their reverse mortgage to help purchase their dream vacation home in Ocean Pines, MD near Ocean City, MD. They received approximately $175,000 from the reverse mortgage on their primary residence and combined it with an additional $50,000 in savings to make the vacation home purchase. With a reverse mortgage, they managed to achieve a primary residence in Anne Arundel County with no payments for as long as they own their own home. Plus, they now have a vacation home for which they paid in full with cash.
Having made this purchase several years ago, the Taylors have seen the value of their vacation home appreciate dramatically. They’re happy and their children and grandchildren are delighted to have a family vacation retreat. The Taylors are just one of many couples and individuals using the reverse mortgage program to supplement their income for unique reasons.