Reverse Mortgage Case Study

Jesse Jarrett, 78, thought about moving after a stroke limited her husband Frank’s mobility. Stairs made it hard for him to get in and out of their house, and even though they both enjoyed gardening and bird watching, there was so much yard to take care of.

On the other hand, the ranch house was in good repair and completely paid for. It was within walking distance of a grocery store and drug store and their church. Their daughter lived just ten minutes away, and the neighborhood was filled with friends, old and young, who watched out for each other.

The Jarretts knew they could continue to live in their home if they made some modifications. They were leery, though, of the cost. Since retiring, they’d gotten along on their Social Security payments and Frank’s pension. Their health care costs were ballooning, however. Jesse didn’t want to lose their home if it became impossible to make monthly payments. They started looking for a new place to live. Then they read about “reverse mortgages”.

The Jarretts qualified for a reverse mortgage of $120,000. They used $30,000 to have ramps installed, to replace the bathtub with a walk-in shower, and to move their flower gardens into raised beds that could be reached from sitting on the edge or from a wheelchair.

They’re going to take the rest of the money as a line of credit that they can draw on as needed. They will use it to pay for yard care and housekeeping assistance, for medical costs and for occasional treats, like more frequent visits to family and friends living elsewhere.

“It’s so reassuring to have this cushion,” says Jesse, “and to know that should something happen to either one of us, the other can live here as long as they’re able.

“Our children have always loved this house for the memories it holds,” she adds. “Now they love it even more because it enables us to live the way we want—independently and comfortably.”