Additional Retirement Income through a Prime Income Mortgage

A Prime Income Mortgage is today's smart way to liberate the equity in your home and invest it at higher rates – leaving you with thousands of dollars of additional retirement income. Unlike a reverse mortgage that depletes your home's equity, a Prime Income Mortgage not only provides additional retirement income, it allows you to keep your home's equity and profit from its future appreciation.

How the program works:

Assume you have a home worth $500,000 with little or no mortgage. Your can earn $10,000 annually through our Prime Income Mortgage Program by mortgaging your home with a $400,000, 5 year interest only mortgage at 6% and invest the proceeds in a Sherbourne Financial, Ltd. Prime Income Mortgage Certificate of Participation that pays an initial annual rate of 8.50%.

Your total income over 5 years would be $50,000 and you get to kept your home and all its appreciation. This is a win win program and it only gets better…

If you continue with the program after 5 years you can refinance your mortgage and receive even higher retirement income. That’s because in five years your home will be worth more. Assuming a 5% compound increase in your home's value over the initial 5 years, your home will now be worth $607.775. At 80% loan to value, a 5 year 6% interest only mortgage would
then yield monthly income of $1,012.95 for each of the next five years. That's $60,775 more in total retirement income.

To learn more about our Prime Investment Mortgage and how we can help you earn additional retirement income click here for a free investment analysis.

To learn more about Sherbourne’s Prime Certificate of Participation investment options click here.