In survey after survey, older Americans say their biggest fear is running out of money. For one California couple, a reverse mortgage has minimized those fears.
Constance and Robert Biddinger, aged 76 and 86, respectively, live in the charming community of Monterey, California.
Located two hours south of San Francisco along the Pacific Coast Highway, Monterey is renowned for its stunning coastline, world-class aquarium, and several John Steinbeck books set there.
Constance and Bob have been married for 38 years, but neither is a California native. Constance grew up in Bad Axe, MI, and Bob in Cedar Rapids, IA.
“My first husband was stationed at the Defense Language Institute in Monterey, where he learned Japanese,” says Connie. “Bob’s first wife was an airline stewardess who was based in San Francisco. We both moved out here to support our spouses.”
For much of her professional career, Constance performed administrative and secretarial work, while Bob was a corporate guy.
“Bob eventually went into the tech business and retired as a tech consultant in the Bay area,” says Connie.
Both saved well for retirement, but stock market volatility in recent years has hit their investments hard. This prompted them to start thinking about alternative solutions, such as a reverse mortgage, to further boost their retirement income.
Bob belonged to the same health club as Galen Call, reverse mortgage division manager at Treehouse Mortgage Group, a division of American Pacific Mortgage.
When the Biddingers first met with Galen, Connie was hesitant to proceed because she felt the upfront fees were too high. “The reverse mortgage was also a foreign concept to me,” she adds.
The couple thanked Galen for her time but decided to wait a little. Eventually, the Biddinger’s financial advisor convinced them to have another meeting with Galen.
“The more we learned, the more we decided it was the right move,” says Connie. “It was especially helpful to meet with a HUD-certified reverse mortgage counselor who could provide additional details and supplement what we learned from Galen.”
The couple’s home was appraised at $780,000, which allowed them to pay off a sizable mortgage and negate their monthly mortgage payment. After the mortgage was paid off, they had $80,000 left over in reverse mortgage funds that they used to establish a line of credit to draw on in case of emergencies.
“We can use that money for just about anything, but we’re very careful about our spending habits,” says Connie. “If we ever need funds to renovate our home, for example, we know where to get the money. And it’s so nice not having a monthly mortgage payment any longer.”
She adds, “We haven’t had the reverse mortgage for very long, but we feel it was the right move for us. The transaction went smoothly and Galen helped us understand everything.”