The good news was that the couple had a significant amount of equity in their house. The bad news was that the couple’s credit scores were lower than the current lending guideline minimum requirement, which made Steve & Marcy ineligible for a refinance of their mortgage.
Based on the results of our conversation I suggested that a reverse mortgage would solve a number of problems they were facing. With so much misinformation in the marketplace, they obviously had concerns about what a reverse mortgage would mean to them. We also addressed the common myths and areas of concern they had as well as how the program works and they decided to move forward.
Through the implementation of a comprehensive debt elimination strategy Steve & Marcy were able to eliminate a $1,600 monthly mortgage payment, $40,000 in credit card debt with over $1,400 in minimum monthly payments, and establish a $5,000 emergency reserve to cover life’s little unbudgeted emergencies, which always seem to come up.
Steve & Marcy took the $3,000 per month of found money and are applying it to the rest of their credit card and auto loan debt and will be totally debt free in less than 12 months, while retaining full ownership, use, and control of their house.