Approaching aging without fear and with confidence is so important, and with some foresight and...
Read MoreHome Equity Conversion Mortgage
If you’re over 62 years old and own your home, you have an opportunity to unlock the power of home equity.
A HECM is a type of reverse mortgage loan that allows homeowners over 62 years old to convert their home equity into cash or other forms of income. Unlike traditional mortgages that require monthly payments, HECMs are different because they provide homeowners with NO payments for life or for as long as they live in their homes. This means that when you take out a HECM, you don’t have to worry about making mortgage payments each month. Instead, the lender may even pay you!
In order to qualify for a HECM, there are certain requirements that must be met. First and foremost, you must be at least 62 years old, typically have anywhere between 55% and 65% home equity, and live in the home for at least 6 months and 1 day every year moving forward. Additionally, all borrowers must complete counseling from an independent third-party entity approved by the Department of Housing and Urban Development (HUD). This counseling provides information on how HECMs (reverse mortgages) work so that borrowers understand all aspects of the process before signing any agreements.
In order to qualify for a HECM, there are certain requirements that must be met. First and foremost, you must be at least 62 years old, typically have anywhere between 55% and 65% home equity, and live in the home for at least 6 months and 1 day every year moving forward. Additionally, all borrowers must complete counseling from an independent third-party entity approved by the Department of Housing and Urban Development (HUD). This counseling provides information on how HECMs (reverse mortgages) work so that borrowers understand all aspects of the process before signing any agreements.
A HECM can help you age in place by providing access to funds that can be used to pay for home improvements or ongoing living expenses. With a HECM, you could:
A HECM can provide financial security and flexibility, as well as estate planning benefits.
With a HECM, you have a fixed monthly payment amount so you’ll know exactly how much money to expect and when you’ll get it.
A HECM can provide additional resources to cover the costs associated with downsizing or relocating.
Yes, that is a common misconception. I thought the same thing until I learned more about this great loan option. I learned that a reverse mortgage can provide financial security for older homeowners who have significant equity in their homes and need additional income to cover expenses in retirement. I also found out that there are specific changes that have been made to make HECMs completely safe when used in the right situation.
A HECM can help you downsize or relocate by providing an additional income source to cover the cost of moving. With a reverse mortgage, you are able to access funds from the equity in your home without needing to take on additional debt or worry about where the money will come from. This means that you have additional resources to cover the costs associated with downsizing or relocating such as closing costs, taxes, and other fees. You also have more flexibility when it comes to how you receive the payments and can choose between a lump sum payment, monthly payments, or a line of credit that grows over time.
A HECM (Home Equity Conversion Mortgage) can give you peace of mind by providing financial security and flexibility, as well as estate planning benefits. With a HECM, you can access funds from the equity in your home without needing to take on additional debt or worry about where the money will come from. You can customize your payments to fit into your budget and lifestyle, and you can use the funds for paying off debts, covering medical expenses, or taking advantage of tax savings. Lastly, a HECM preserves inheritance for other family members while still giving you peace of mind that your financial needs will be taken care of after you pass away.
There are many lenders who provide services for HECMs. We have found 2 exceptional loan agents that can certainly help you apply. Danielle Durtschi or Kevin Rice would be more than thrilled to help you!
Homeowners looking to secure a Home Equity Conversion Mortgage (HECM) loan may be familiar with closing costs and fees associated with traditional loans, but there are also other fees they should understand before completing the loan process. A HECM loan requires origination fees based on the value of the home, followed by an upfront mortgage insurance premium, that is added to the loan amount. While this might seem daunting, it’s important to evaluate these potential expenses against other benefits of a HECM loan, such as tax advantages and limited to no out-of-pocket costs. With that in mind, those looking to take advantage of a reverse mortgage should make sure the cost savings outweigh any associated fees.
Peter(65) & Sherry(62) want to downsize their home and retire, but can’t retire because their monthly mortgage payment is too high!
Vicki(74) is now a widow. She has no house payment but her income is now much less and she has home repairs that need to be made and medical bills that need to be paid.
Roger(68) & Janet(67) were interested in buying an Airbnb in the mountains to generate extra income and for themselves or their family to occasionally enjoy.
Approaching aging without fear and with confidence is so important, and with some foresight and...
Read MoreAre you familiar with how reverse mortgages have evolved over the years and how they...
Read MoreReverse mortgages and Home Equity Lines of Credit (HELOCs) can both be attractive options for...
Read MoreHECM loans are specifically designed for seniors and can help you purchase a new home...
Read MoreComplete the form and we’ll get right back to you and see how we can help accomplish your goals.
208.985.4933
mandy@idahopropertyinvesting.com
Complete the form and we will be in touch with you to see how we can help accomplish your goals.
208.985.4933
mandy@idahopropertyinvesting.com
The Real Estate Agents of Idaho Property Investing, LLC are part of the Atova, Inc. Real Estate Brokerage located in Boise Idaho.
© 2023 Idaho Property Investing • All Rights Reserved
*Drawing will be on May 31st
We are gathering information regarding senior housing and how the community feels about equity loans. Your opinion matters!
Our team would love to talk to you more about how you can use your existing home equity as a way to increase your financial security and how to leverage your equity to buy a new home or rental property.
I would love to talk to you more about how you can use your existing home equity as a way to increase your financial security! I have personal experience with my parents that has led me to have a passion to help people who qualify for a reverse mortgage gain financial peace of mind. Please fill out the form below or you can also text ro call me at 208.985.4933.