According to a recent Harvard study, debt among seniors has never been higher. In 2016, nearly half of all seniors were carrying a mortgage, and more seniors are filing for bankruptcy than ever before, increasing 500% since 1991. Having a mortgage while retired can quickly gobble up all of your retirement savings or fixed income.
Thankfully, there is a solution available to senior homeowners to ensure you can live more comfortably in retirement. A Home Equity Conversion Mortgage (HECM) allows you to live in your home forever, and never make a monthly mortgage payment. In addition, a HECM can even provide you with monthly income!
The requirements for a HECM are straightforward: you must be 62 or older, have 40–60% equity in your primary residence, and continue to pay property taxes and homeowners insurance. Most seniors qualify for the program with just their social security income, and bruised credit is usually not a problem.
A HECM is a government-insured, non-recourse loan, which means that you can never be “under water” on your house, and you always retain the title to your home.
Call me today to find out if a HECM is the financial solution to protect your savings in retirement.