A home equity conversion mortgage (HECM) has many advantages that many people may not be aware of simply because they have not been provided with the proper amount of information. If you are 62 years of age or older and have an existing mortgage payment, you can use the proceeds from an HECM to pay off your balance. Perhaps you have medical bills you are struggling to pay, which is far more common than not. With an HECM, there is no need to keep worrying about them. Home equity conversion mortgage lenders do not decide where your loan money is spent, you decide. That’s right, you are in control of how the money is spent, which can help many seniors remain financially stable in an unstable economy. In addition, proceeds from an HECM loan are nontaxable income.
With an HECM, the title to your home remains in your name. You can live in the home until you choose to move or sell it. You must remain to pay your homeowner’s insurance and property tax payments to stay in good standing with your loan terms. The home must also stay in a good state.
Best Loan for Seniors
When considering the different choices of loans available to seniors, the best and most easily obtainable would be a home equity conversion mortgage.
Qualifications are simple:
* Must be at least 62 years of age or older.
* Must own your own home.
* Must reside in your home.
* Must be current with homeowner’s insurance and property taxes.
You can choose several payment methods such as lump sum, monthly payment, a line of credit, or a combination of these methods. Lenders work with you to find what fits your needs.
With a home equity conversion mortgage, you can retire with ease of mind. If you have been considering retirement, but not sure you could afford to, an HECM could help you decide. By having monthly payments or one lump sum, retirement could now look possible with this mortgage. Use your money to help with monthly expenses, home repairs, take that vacation you never had a chance to, or however you choose.
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