Why should I get a Reverse Mortgage and what can it do for me?
Get a line of credit – You can use your home as a big credit card with a very low interest rate. Use the line of credit to finance home repairs, a vacation and everything else!
Eliminate mortgage payment – You can completely get rid of your mortgage payment for the rest of your life. Well, technically it’s for as long as you live in the home. It’s required that the property be your primary residence and you occupy the home for most of the year.
Get a Cash Lump Sum – Pull out tax-free cash all at once. All HECM proceeds are always tax-free because this is still considered a loan.
Who can it benefit?
Have a low monthly income – The HECM is great option for people who either have a low income or are expecting an income reduction in the future. Eliminating a mortgage payment or establishing a line of credit can be helpful in a situation like this.
Someone with no Heirs – If you would like to continue living in your home and you’re not planning on leaving the home to any heirs, the HECM loan is almost a no-brainer. What’s the point of having equity in the home if you can’t use it. You can’t take the house with you when you die so use it to your benefit.
Can’t qualify for a traditional loan – Often, people on a fixed income can have a hard time qualifying for a traditional loan. Unlike a traditional loan, the HECM does not have any income requirements nor any credit score minimum.
Just turned 62 and retiring from work – They say that 62 is the new 50! Or something like that. This could be the time for you to travel or take advantage of extra free time. Get rid of your mortgage payment or take advantage of the line of credit.