by Peter Nastasi, Sierra Pacific Mortgage, NMLS ID 17073
The Borrower Situation
Susan Parker earned $60,000 per year as a systems project manager until she lost her job nine months ago. At 63, she was having a difficult time finding another job and was considering retiring early. She knew that this would mean lower lifetime Social Security benefits than if she deferred until age 70, but what else could she do? She had exhausted her unemployment benefits and was drawing down on her savings to pay for her mortgage and other living expenses.
A Home Equity Conversion Mortgage (HECM) helped Susan pay off her existing home mortgage and improved her monthly cash flow by $1,500. She also elected to receive her remaining HECM loan proceeds in equal monthly payments of $1,091 for as long as she lives in the home. She was in excellent health and expected to live well into her early 80s. With these additional sources of funds, Susan could defer drawing her Social Security benefits until age 70, resulting in increased monthly benefits of $847 or $22,596 over her lifetime.
For more information call Peter Nastasi, Branch Manager or Sierra Pacific Mortgage. Peter can be reached at 401-533-5390 or email [email protected]pm1.com.