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Greg and Jennifer are both age 75 have a combined life expectancy of another 14 years. They have depleted their capital in retirement and only have their home left as an asset. They are looking into taking a reverse mortgage on their home. The provider is using the following assumptions. Mortgage Interest Rate 4.25% Current Home Value - $650,000 • Growth Rate Home - 2.5% • Maximum loan outstanding at Life Expectancy - 75% of Future Value of Home How much can they borrow to purchase an annuity.

Greg and Jennifer are both age 75 have a combined life expectancy of another 14 years. They have depleted their capital in retirement and only have their home left as an asset. They are looking into taking a reverse mortgage on their home. The provider is using the following assumptions. Mortgage Interest Rate 4.25% Current Home Value - $650,000 • Growth Rate Home - 2.5% • Maximum loan outstanding at Life Expectancy - 75% of Future Value of Home How much can they borrow to purchase an annuity.

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Greg and Jenniter are both age 75 have a combined life expectancy of another 14 years. They have depleted their capital in retirement and only have their home left as an asset. They are looking into taking a reverse mortgage on their home. The provider is using the following assumptions. Mortgage Interest Rate 4.25% Current Home Value - $650,000 • Growth Rate Home - 2.5% • Maximum loan outstanding at Life Expectancy - 75% of Future Value of Home How much can they borrow to purchase an annuity.
Transcribed Image Text:Greg and Jenniter are both age 75 have a combined life expectancy of another 14 years. They have depleted their capital in retirement and only have their home left as an asset. They are looking into taking a reverse mortgage on their home. The provider is using the following assumptions. Mortgage Interest Rate 4.25% Current Home Value - $650,000 • Growth Rate Home - 2.5% • Maximum loan outstanding at Life Expectancy - 75% of Future Value of Home How much can they borrow to purchase an annuity.
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