Scenario 4:

Isabel, 72, had worked hard all of her life to pay off her home and now she wanted to take advantage of the equity that she had built up in it. She wanted some extra money so she could help send her granddaughter to college and to have money available for any other opportunities that may arise in the future. She spoke to a reverse mortgage specialist and her home appraised for $195,000. This meant that Isabel would be able to receive $20,000 in a lump sum, in addition to one of the following options:

She decided that she would go with the line of credit option, in addition to the lump sum. This way, she would have the money that she wanted to give to her granddaughter as well as additional funds to do anything that she wished!