Retirement security in HECM

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You’ve been working for a long time, and you can’t wait to enjoy your American retirement. Did you know that taking out a reverse mortgage can work in your favor when it comes to having security in retirement?

If you are 62 years old and above or about to reach that milestone, you might want to consider taking out a reverse mortgage as part of your retirement planning.  A reverse mortgage allows you to have the freedom to turn your home equity into cash – cash that you need whenever an emergency arises. At this stage in your life, the reality of a health scare is real. Or maybe, you are in the pink of health, but you want to go on a cruise and enjoy the sunset at the coast of the Mediterranean.

What happens in a reverse mortgage is that your home becomes the collateral of the loan, and you will only need to repay when the principal borrower passes or if you choose to move somewhere else.  Here are the possible ways to settle the debt when one of those two things happen:

      • sell the home to pay off the remaining balance of the mortgage
      • apply for refinance to keep the ownership of the loan
      • authorize the lender to sell the home to settle the mortgage balance

The most common reverse mortgage is the home equity conversion mortgage (HECM). This is federally insured, and as such, there are limits – the cost to the borrowers, and the maximum loan amount is limited.

There is also a non-HECM loan, which is available through lending institutions. They offer a higher loan amount but are not federally insured, meaning it can be more expensive than HECM loans.

There are different kinds of reverse mortgages that will cater to your specialized needs. We can help you choose which option is best for what you want and how you want to enjoy the best years of your life.