Could a Reverse Mortgage (HECM) Save Your Retirement? Now It Counts-Home section.
A HECM saves your retirement if you’re a homeowner age 62 or older, have paid down all or a considerable amount of your mortgage, and currently living in the home, you may participate in FHA’s Home Equity Conversion Mortgage (HECM) program. HECM is FHA’s reverse mortgage program that enables you to eliminate your mortgage payment and withdraw a portion of your home’s equity with a no-pay back option.
With less money going towards expenses and more available funds on hand, you can use these additional resources to supplement other expenses during your retirement. Some use these funds for unexpected expenses. Others have used the extra money to modify their home so that they can remain in their home safely as mobility becomes an issue with age. Others have used the additional funds for recreational purposes like travel or invested into another stream of potential income.
You can also use a HECM to purchase a primary residence if you are able to use cash on hand to pay the difference between the HECM proceeds and the sales price plus closing costs for the property you are purchasing.
Close to a million homeowners could still benefit today, but sadly, many are unaware of this great program. Remember, it’s free to see if you qualify. Call Scott Underwood “Alabama’ Reverse Mortgage Guy” at 205.908.2993. I have helped Birmingham, Alabama homeowners for 11 years understand how the HECM works.