Donna B. was getting tired of the stress. A residential Realtor for over 35 years, a former top performer in her market and a distant dream to just slow down.
The problem? She had refinanced her home in order to buy one more investment rental home, and the new mortgage payments just weren’t quite being covered by her rental income month in and out.
And, the worry that followed the pressure of making those payments was becoming overwhelming.
So, following the advice of a trusted friend, Donna reached out to Richard McWhorter of McWhorter Reverse to see what could be done.
The solution? Sell one of those rental homes, take some of the money along with a Home Equity Conversion Mortgage (HECM) to help pay off that first mortgage on her primary residence and use it to remove the pressure of those payments.
And now? She is still very active in the residential real estate industry, as she has discovered what made her choose it as her lifetime of work… the love of her day to day, the meeting new people and helping them buy their next dream home.
Today, she no longer has the hammer of making payments on that old first mortgage every month. If she doesn’t close a loan, she skips that month. When she does close one, she voluntarily makes a payment or two just to pay down the reverse loan balance.
Why pay it down at all? Donna understands that every payment made goes toward increasing the line of credit balance that automatically came with her HECM loan… a line that has no personal guarantee with the home itself as the sole collateral, that cannot be called as long as she continues to occupy the home as her primary residence and that grows at the same rate she is paying on the outstanding loan balance.
And that increased borrowing capacity is FHA guaranteed to grow, every month, regardless of the value of the home. For how long? Again, as long as she lives in the home as her primary residence (and keeps the home in good repair and pays taxes, insurance and other fees when due).
Maybe you, or someone you know, needs a similar success story. Call, text or email Richard McWhorter of McWhorter Reverse Mortgage to see how the HUD regulated and FHA insured Home Equity Conversion Mortgage may be perfect for you.
