Persons who have reached retirement age have additional provisions open to them, one of which being HECM loans. You may have heard their benefits touted in TV commercials and in conversation with neighbors. Here are three of the top advantages of reverse mortgages.
Access to Cash
You may have had a fair amount of assets tied up in investments that have dropped in value. This can certainly affect your monthly income, and you may be looking at options for supplementing your current earnings. HECM loans give you the opportunity to tap into your home’s equity to start seeing some of that cash now. By liquidizing that value, you can pay medical bills, fix up your home or use it to help with everyday costs.
Stay in Your Home
That is simply not true. You can continue to live in and enjoy your home as long as it’s your primary residence. This is nice for families who are comfortable where they are and wouldn’t want to experience the trouble of packing, moving, adapting and potentially downsizing to settle into another place.
Relatively Easy to Qualify for
You’re probably evaluating your options to see which one makes the most sense for you. Some homeowners have looked into refinancing, only to find out that it didn’t provide the benefits they were looking for. Other financial tools require a stellar credit rating, making them out-of-reach for many. HECM loans are lower-risk, so they’re accessible to more people.
With advantages like cash, the ability to keep your home and being relatively easy to obtain, reverse mortgages will probably be one of the provisions people tap into as the cost of living continues to rise. Although your working days are behind you, you can still enjoy a steady income with the quality of life.