A Florida Reverse Mortgage Borrower Shares How It Changed Their Retirement

Tampa, FL – “Here we are at 72 truly challenged financially. We don’t receive a company pension plan that includes insurance coverage. We rely solely on our social security and savings to see us through retirement. Our rising medical costs and the down economy affected our investments and made our retirement financially challenging”, shared Jake and Mary Loux.

More and more seniors are considering the benefits of a Federally Insured Home Equity Conversion Mortgage, a special kind of mortgage designed for people over the age of 62. Reverse mortgages provide a way to pull cash out of one’s home.

Jake and Mary Loux, who recently celebrated their 53rd Wedding Anniversary retired and moved to Florida in 2001, and began the process of handing over the family business to their son. “What we discovered like most small business owners, is it became more and more difficult for our son to secure credit through traditional banking institutions.” commented Jake Loux. Between their desire to help their son with the family business and a need to make some home improvements, they began to search for other financial resources to meet their needs.

Not knowing anything about the Federally Insured HECM Program, Jake and Mary received a mailer from First National Bank and decided to call and ask questions. “The details were made very easy to understand by a very patient and understanding loan consultant at First National Bank, Jorge Diaz”, shared Mary Loux.

“What we learned was that they we could borrow money against the equity in our home. We were happily surprised to learn that the loan, plus accrued interest, doesn’t have to be paid back until you move out. If you die, your family can pay off the loan (just like a traditional home mortgage balance), or if they choose not to, they can sell the house to pay off the debt. Anything left over would go to our family.”

Jake and Mary quickly decided that this was the answer they were looking for to solve their financial challenge. Since doing the HECM, they were able to stabilize the family business, install new kitchen flooring and appliances. Even more importantly they are able to relax and enjoy doing things they like to do. Mary has taken up quilting and Jake spends a lot of time helping out with the greens at The Villages golf course. More recently they were able to sponsor their Granddaughter in a fundraiser for Breast Cancer. “Before the HECM we were living on a very tight budget and would have never been able to do any of these things for our family and for ourselves. I can’t say enough wonderful things about the folks at First National Bank. The HECM opened a new chapter in our life,” commented a very happy Mary Loux.