How to Supplement Retirement Income With a HECM Reverse Mortgage

Supplement Retirement Income with Reverse Mortgage

If you’re 62 or older and own a home, a HECM reverse mortgage can be a fantastic way to supplement your existing retirement income. You can receive tax-free monthly paychecks from your home’s equity for a set period of time or for the rest of your life, depending on your financial needs and goals. And the best part is that you don’t have to give up ownership of your home. The Housing … Read More…

How to Finance Home Improvements With a HECM Reverse Mortgage

How to Finance Home Improvements With a Reverse Mortgage

If you’re 62 or older, a HECM reverse mortgage is a fantastic tool for financing home improvements because it doesn’t require a monthly payment and you don’t have to pay the money back for as long as you live in the home. No other home loan program out there offers that. Your obligation under the HECM program is to simply maintain the home as your primary residence (don’t turn it into a second … Read More…

How to Increase Your Liquid Retirement Assets with a Tax-Free Reverse Mortgage

Increase Liquid Retirement Assets

What if I was to say that you could substantially increase your available liquid retirement assets by tens or hundreds of thousands of dollars with a little paperwork and a few months worth of time? What would that mean for your retirement? What would that mean for your financial security? Believe it or not, it can be done, and a HECM reverse mortgage can make it happen. Will Your Money Outlive You? One … Read More…

How to Eliminate Mortgage, Credit Card, or Other Loan Payments With a HECM Reverse Mortgage

Credit Cards

The quality of your lifestyle in retirement is largely determined by your disposable income, or the income you have left over at the end of the month after all the mandatory monthly bills are paid. If you’re carrying a lot of debt, those payments could be holding you back from the lifestyle you really want. Many retirees with large mortgage payments, credit card balances, and auto loans often don’t have the free cash … Read More…

Case Study: How A Reverse Mortgage Enabled One Couple to Finally Retire

How a Reverse Mortgage Enabled One Couple to Retire

Ted and Patricia, aged 67 and 64, respectively, live in Lake Forest, CA and are looking ahead toward retirement. Both are still working, Patricia as a nurse, Ted as a truck driver. They like their jobs, but they’ve been at them for a long time and are tired of the stress and long commutes. They really want to quit working so they can spend more time with their children and … Read More…

The Basics: HECM Reverse Mortgage Eligibility Requirements

The HECM reverse mortgage is an FHA-insured mortgage program designed to give seniors access to a large portion of the value of their home without having to take on a mortgage payment or give up ownership of the home. The reverse mortgage is a home loan, so it does come with some basic eligibility requirements: You must be 62 or older. For married couples, only one individual needs to be at least 62 years of age … Read More…

How Does the Variable-Rate HECM Work?

The variable-rate HECM is the most popular product in today’s reverse mortgage marketplace. It’s more flexible and customizable than it’s fixed-rate counterpart and will often offer more cash as well. It comes with a variable interest rate that can move around over time, but only within certain limits. If the idea of a variable rate makes you nervous, keep in mind that the reverse mortgage never requires a monthly payment. Even if your interest … Read More…

How Does the Fixed-Rate HECM Work?

There are two main FHA-insured reverse mortgage products, the fixed-rate HECM and the variable-rate HECM. The fixed-rate HECM is generally the less popular of the two because it isn’t as flexible and customizable as the variable-rate HECM, but it is still a great reverse mortgage option for many people. It comes with the security and predictability of an interest rate that never changes, but the rate is usually higher than the start rate of a comparable variable-rate HECM. How It Works … Read More…

How One Couple (Unfortunately) Got Burned By a Reverse Mortgage

Reverse mortgages do a lot of good for a lot of people every day, but unfortunately you never hear about that in the media. What you do hear about are the rare horror stories where something goes wrong and somebody gets burned by a reverse mortgage, either because they abused or the lender misled them about the program (or both). An Unfortunate Situation Check out the following excerpt from an article … Read More…