A HECM reverse mortgage loan is a way to turn a portion of the equity in your home into cash. The proceeds from a reverse mortgage can be used to pay for unexpected expenses, such as nursing home costs or long-term care. It could also provide you with additional cash flow for all the expenses you have. As long as all loan terms are met, the loan does not require repayment until the last surviving borrower permanently moves out of the home, or passes away.
Home equity is often a forgotten asset in retirement. You work very hard for many years to pay off the mortgage, but for what reason? Home equity is not liquid money able to be used to purchase things during retirement. You cannot remove your back steps and use it to purchase groceries or medications. An example of a recent client shows how a reverse mortgage helped her: she previously had a monthly forward mortgage payment and was quickly spending through her retirement savings. Her financial adviser showed her an estimated prediction showing her current spending would run out by her early-80s. After factoring in the reverse mortgage loan, her retirement funds will now last to her mid-90s and she even has cash available to update areas in her home.**
The reverse mortgage is a dynamic and customizable product that can be implemented specifically for each client’s needs. That is why it is so important to work with a local reverse mortgage planner to ensure the product is properly explained and utilized. Talk to Derek Helms at Fairway Independent Mortgage, located at 110 Matthews Station Street, Suite 2D in Matthews, for more information and a no obligation consultation. He can be reached at 704-261-1000.
Most, but not all, reverse mortgages today are federally insured through the Federal Housing Administration’s Home Equity Conversion Mortgage (HECM) Program. This advertisement talks about HECM loans only.
This advertisement does not constitute financial advice. Please consult a financial advisor for regarding your specific situation.
Copyright©2018 Fairway Independent Mortgage Corporation (“Fairway”) NMLS#2289. 4750 S. Biltmore Lane, Madison, WI 53718, 1-877-699-0353. All rights reserved. Fairway is not affiliated with any government agencies. These materials are not from HUD or FHA and were not approved by HUD or a government agency. Reverse mortgage borrowers are required to obtain an eligibility certificate by receiving counseling sessions with a HUD-approved agency. The youngest borrower must be at least 62 years old. Monthly reverse mortgage advances may affect eligibility for some other programs. This is not an offer to enter into an agreement. Not all customers will qualify. Information, rates and programs are subject to change without notice. All products are subject to credit and property approval. Other restrictions and limitations may apply. Georgia Residential Mortgage Licensee #21158