A Reverse Mortgage is a powerful financial management tool that can be used very effectively in retirement. It is for those over the age of 62 that have equity in their primary residence, and would like to access a piece of that equity for their personal use. The legal name for a Reverse Mortgage is HOME EQUITY CONVERSION MORTGAGE, and the acronym is HECM. Most people, however, refer to this product as a Reverse Mortgage.
Proceeds from a Reverse Mortgage can be used in a variety of ways, such as
- Refinancing an existing mortgage to reduce monthly payments
- Consolidate auto loans or other high interest credit debt to reduce monthly costs
- Create a “rainy day fund” with a GROWING line of credit, much different than a traditional HELOC
- Fund Long Term Care Insurance
- Pay for in home care in order to be able to “age in place”
- Supplement monthly income
- Gain greater financial flexibility in retirement and have greater peace of mind
- OR ………… even purchase a new home that suits you
You are eligible if one title holder on the property is age 62 or older, the home is your primary residence and you plan on continuing to live in that home, your have sufficient equity as defined by FHA principal limit factors, you meet minimum income and credit standards, and you will be able to pay for property taxes, home owners association dues and home owners insurance on your property.
We are delighted to answer all your questions and concerns, so JUST ASK LAURA ……..