What The Heck Is A HECM?

You're at the kitchen table, planning your retirement and the funds aren't there. Where do you turn... HECM to the rescue!

If you're 62 or older, and meet qualifications, a Home Equity Conversion Mortgage could be exactly the tool you need to put your retirement plan in overdrive!

Ways HECM Can Help Fund Retirement

• Supplementing Retirement Income: HECM provides homeowners with cash that can be used to supplement retirement income, helping to cover living expenses, healthcare costs, or other financial needs.

• No Monthly Mortgage Payments: With HECM, borrowers are not required to make monthly mortgage payments, which can free up cash flow for other expenses. The loan is repaid when the homeowner sells the house, moves out, or passes away.

• Access to Home Equity: Homeowners can access a significant portion of their home equity, which can be used for various purposes, such as paying off existing debts, funding long-term care, or even investing in other opportunities.

• Flexible Payment Options: HECM offers various payment options, including lump-sum payments, monthly payments, or a line of credit, allowing retirees to choose the method that best suits their financial situation.

• Tax-Free Funds: The money received from a HECM is generally considered tax-free, providing retirees with additional financial flexibility

Considerations Before Choosing HECM

• Impact on Inheritance: Taking out a HECM reduces the equity in the home, which may affect the inheritance left to heirs.

• Costs and Fees: HECMs come with various costs, including origination fees, closing costs, and mortgage insurance premiums, which should be considered when evaluating this option.

• Home Maintenance Responsibility: Homeowners are still responsible for maintaining the home, paying property taxes, and homeowners' insurance, which can impact overall financial planning.

Interested in finding out more about using a HECM to support your retirement?

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