You’ve worked hard to build a life in your home. Now, let your home work for you. In a time of financial uncertainty, a HECM reverse mortgage can provide the stability and peace of mind you deserve. By accessing the equity in your home, you can unlock a more secure and enjoyable retirement.
Unlock the possibilities:
Your home is a reflection of your life’s journey. Let it be the foundation for a secure and happy future.
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First things first, 98% of all reverse mortgages, also known as reverse equity loans, are the Federally Insured Home Equity Conversion Mortgage, also known as a HECM, or “Heck-um.
The “NEW” HECM is the Federal Housing Administration’s upgraded or enhanced reverse mortgage credit line program. The “Old” reverse mortgage is obsolete – making it impossible to really compare the two.
The HECM can be an amazing retirement tool, allowing seniors to tap into their reverse equity. The HECM is simply a Credit Line that allows you to access your home’s equity providing you with Tax-Free Cash without requiring any monthly repayment.
The following scenarios illustrate how the HECM program can be utilized to improve financial situations in retirement.
Bob and Joyce thought they had a good retirement planned out, but their financial planner showed them that at their current spending, they would run out of money by the age of only 82.
Due to this alarming concern they spoke with a Senior Lending Advisor who showed them that using their homes equity, through a HECM Credit Line, could supplement their income which in turn would prevent premature asset depletion of their retirement portfolio. After reviewing the proven studies in the Journal of Financial Planning, their financial planner concurred and helped them set up a strategy.
All they needed to do was take small draws from a HECM Credit Line to reduce their portfolio withdrawals, which ultimately ensured that their money would extend well past their 99th birthdays!
Harold & Lena’ s home was valued at $475,000 and they had a $149,000 mortgage outstanding. They qualified for a HECM credit line of $264,525 which paid off their mortgage balance and left them with the difference of $115,525 remaining in their HECM growing credit line. They were relieved that they no longer had to make their $873/month mortgage payment for the rest of their lives. They also had the security of a credit line that’s guaranteed to grow overtime.
Claire owned her home free and clear. Even with no mortgage payment she had enough income to pay the bills, but not much more. She was living month to month and relying on Social Security income and a small pension. Rather than taking out a traditional mortgage and being burdened with a mortgage payment that she couldn’t afford,Claire decided to keep living month-to-month.
She finally spoke with a Senior Lending advisor who advised her that her home’ s value of $225,000 qualified her for a $121,175 Credit Line. The HECM Credit Line helped Claire feel secure knowing that she never had to make a mortgage payment when she withdrew her money. Claire breathed a sigh of relief because she finally did not have to live month-to month anymore. Now she was able to live the retirement she always wanted and remain in her home.
Your personal HECM advisor is there to quickly provide answers to your questions while working at your pace. They are with you from initial consultation to closing and any point in between.
Frequently Asked Questions
You do! The title of the home belongs to you. A reverse mortgage is a way for you to borrow money and place your home as a security blanket for the loan.
The ideal candidate for a reverse mortgage would be:
Homeowner With Sufficient Equity
Homeowner Who Has Substantially Paid or Has Paid Off Their Mortgage
Affluent Retiree
