A Home Equity Conversion Mortgage (HECM) reverse mortgage loan can be a beneficial financial tool for seniors seeking a supplemental income stream. However, a reverse mortgage loan is only available for homeowners aged 62 and older who also have sufficient equity built up in their homes.
In addition, eligible homeowners must meet other basic requirements such as living in the home full time as their primary residence and maintaining the property. For more information about reverse mortgage loans and the specific requirements, call a reverse mortgage advisor at 800-976-6211 or use the reverse mortgage calculator in the upper right hand corner.
Situations When a Reverse Mortgage May Benefit You
- Homeowner’s whose income decreases in retirement, but they still have a monthly mortgage payment. Sometimes retirement is by choice but there are times where it is not. In these circumstances, mortgage payments can be overwhelming. The proceeds from a reverse mortgage loan can pay off the existing mortgage freeing up income for other things or to create a nest egg.
- Those living solely on Social Security or small pensions who need to supplement their income. A tenured payment from a reverse mortgage loan will provide a monthly income stream as long as the homeowner lives in the house and meets other basic requirements.
- Those living off a nest egg who are fearful that their savings will not last. For many retirees, concern about outliving their savings is a real and constant fear. A line of credit distribution option can be accessed when needed and can bring peace of mind to retirees.
- Those who are retiring early, but have the option of deferring their Social Security payments until they are 65 to in order to collect a larger benefit amount. Taking a term monthly payment through a reverse mortgage loan can provide a source of income for the life of the loan, especially useful until Social Security payments begin.
- Those who want to purchase a house, but do not want a monthly mortgage payment. A HECM for purchase can be an option for retirees that want to move to a warmer climate, be closer to family or right size to a smaller home but don’t want the burden of monthly mortgage payments to affect their available monthly income.
- Those who want to manage fluctuating incomes. For seniors that have to worry about a fluctuating income, a HECM Line of Credit could alleviate that stress by providing a line of credit that can be drawn on when income levels decrease.
- Those who need emergency funds. Many seniors have enough funds to meet their day to day needs. However, should an emergency arise, they do not have the extra funds needed. A HECM Line of Credit can provide the reserves necessary for financial security.
A reverse mortgage advisor can help homeowners determine which reverse mortgage loan option will work best for them, as well as discuss all of the terms and obligations of a reverse mortgage loan. Should you or someone you know be struggling financially a reverse mortgage loan may be the right option.