Your Homes Equity Might Be the Key to a More Secure Retirement!
A Home Equity Conversion Mortgage aka HECM, gives the homeowner age 62+ access to the accumulated equity from the payments they have made and the equity increases in market value over time without having to pay the lender or bank back until the last homeowner passes or no longer lives in the home.
You must pay off any existing mortgage on the home, you can also pay off any other obligations, such as car loans, credit cards, medical bills, etc., eliminating monthly payments.
Any remaining funds from your loan not used to pay off other debts can be taken in a few different ways:
1. One-time, tax free lump sum payment
2. Steady, tax free monthly payments
3. Line of credit as a "Safety Net" to use later
4. A combination of all of the above
As always consult with your tax professional or financial consultant for any effect on taxes or government benefits.
* Eliminate or reduce credit card or other debts
* Make home updates, repairs or modifications to meet your needs
* Have more money on hand to meet everyday expenses and bills
* Pay for healthcare expenses, making it easier to age in place in your home
* Establish a line of credit for emergencies or other expenses
* Pay for long-term care needs now or in the future
* Help a child or grandchild with major expenses, such as college tuition or a down payment
* Take a once in a lifetime vacation with your family
* Or any other purpose you have in mind
Having a HECM mortgage does not mean giving up ownership or extra equity or future market value increases. It's your home to live in until you decide to move out or you pass on. You can sell at any time or pass on to your heirs when the time comes.
You are required to:
* Live in the home as your primary residence
* Pay required property taxes, hazard insurance and HOA dues if applicable
* Keep the home in good repair according to Federal Housing Administration requirements
When the home passes to your heirs, if that is your decision, the money to repay the bank usually comes from the sale of the home. However, your heirs have the option to arrange their own financing to pay off the bank, or use available cash funds and retain the home to live in or use as an investment.
And neither your estate or your heirs can be forced to repay the bank more than your homes current market price. FHA insurance is part of every government insured HECM mortgage, and that insurance makes up any shortfall that may be there at settlement. Nobody has to write a check to make the bank whole.
I truly enjoy meeting and getting to know my clients and their families, so feel free to visit during normal business hours or I can come to you. Just give me a call to set up your appointment.
Scottsdale, Arizona 85255, United States