Reverse Mortgage - Today's Source for Retirement Security.

Posted on

Jan 26, 2012

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Utah - Utah

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With interest rates for savings account at record lows, many people are wondering how to increase their cash flow without having to go back into a tough job market. Using the equity of your home to help pay off debts or supplement income can be a smart choice.
Question: Will a HECM Mortgage cause me to lose my home?
A: No A HECM Mortgage is only a lien. You still own your home. When you leave the home, the loan balance is repaid in full with the remaining equity passing to you or your heirs.
Question: Will a HECM Mortgage use up the equity in my home leaving nothing for my heirs?
A: No Because you still own your home, and because it will continue to grow in value, it is very difficult to use up all of your equity.
Question: Is a HECM Mortgage a better option than selling my home?
A: Yes Selling your home eliminates one of your largest and most secure investments. Sales fees alone will eat up 6-10% of your homes equity. Then you may have to pay rent or make some other monthly payment that chips away at your savings. And, moving is often physically and emotionally difficult.
Question: Since I already have a mortgage, will I qualify for a HECM Mortgage?
A: Yes You can use the HECM Mortgage to pay off the balance of your current mortgage or equity loan. By doing so, you will free up the money you once used for monthly loan payments.
Question: Will my credit score be an issue when applying for a HECM Mortgage?
A: No There are no credit, income or health requirements to qualify for a HECM Mortgage. If you are 62 or older and you own a home-you qualify.
Editors Note: This article was submitted by Paul Carlin at First National Bank. NMLS# 308194 For more free information or a complementary assessment to see if you or a loved one qualifies for this HECM program call 801-742-5387

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