Tom MacDonald - Reverse Mortgage Consultant






       Reverse Mortgage Consultant

      Tom MacDonald


       707-265-6385      800-801-5727   Is This The Best Reverse Mortgage Website in the U.S.*

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Reverse Mortgage Consultant- Tom MacDonald BBB Business Review

Line of Credit Draws Offset by Growth

My 73 & 74 years young, affluent clients, Mr. and Mrs. K called me to discuss the Reverse Mortgage.  They really knew very little but wanted to know more because of the change in their monthly dividend income. Their dividend income had dropped by $2000.00 per month due to the historically low interest rates.

The K's primary residence was free and clear and they have a second home in Palm Springs, CA where they spend the holidays and golf until early Spring when they return home.  He and his wife have planned and prepared for a very successful retirement. However, the economic conditions have greatly impacted their lifestyle. 

Because the K's did not want to invade their investment assets, they elected a Reverse Mortgage HECM program with the Line of Credit option. 

This program offered the K's proceeds in the amount of $251,100.00*, which they placed in the Line of Credit. They then took withdrawals of $2,000* per month wired directly to their bank account. 

Their Line of Credit option included a compounding growth rate of  4.011%*, based on their initial balance of $251,100*.  After an annual disbursement of  $24,000* plus a growth rate of approximately $10,000* the Line of Credit balance was approximately $237,000.00*.  The result: this year the Line of Credit growth rate offset the withdrawal by more than 40%.

Needless to say, the K's are very, very happy with their choice and feel confident that they made the right decision.

*This is an example that may not currently have the same criteria.  Results will vary based on borrower's age, current interest rates, home value and FHA maximum limits.  Ask me to quote a similar scenario for you or one of your clients.