When you were younger, your home was the perfect place. Your spacious backyard provided a place for your children and even your pets to run and play. Your kitchen provided meals to feed your family and your living room and den served as the family gathering spot. During those years, the last thing you may have thought was leaving the home that you loved and made so many memories in.
However, as you enter the stage of retirement you may begin to realize you prefer to grow older in a new home that best fits this new stage in your life. For instance, your current home may be too large for your needs and having a multiple-level home with many rooms may take more work to maintain than you want.
Whatever your reasons may be, downsizing to a smaller, more manageable home is ideal.
Just think, you could purchase your new dream home with no monthly mortgage payments* with the Home Equity Conversion Mortgage (HECM).
What is HECM?
Commonly known as a “reverse mortgage”, the Home Equity Conversion Mortgage (HECM) is a government-insured loan that allows older homeowners to convert home-equity into tax-free cash.* Perfect for borrowers who are downsizing or want to purchase a home without a monthly mortgage payment.*
- No payment option available*
- HECMs are federally insured.
- Same products, limits, LTVs, and rates as traditional mortgages
- Excellent planning tool to fund retirement
THE FINE PRINT
- Must be 62 years old, or older
- Applies only to owner-occupied, primary residences
- Mandatory HUD counseling
- The homeowner is still responsible for property taxes, homeowners insurance, upkeep and any relevant HOA fees.
*Age-based assessment and other guidelines determine allowable equity ratios. Various payment and draw options available.