According to a recent survey of seniors, 80% were concerned about their ability to age-in-place due to the cost. Sixty percent have less than $10,000 in savings (including investments and retirement plans), and debt among seniors has never been higher. Nearly half of homeowners ages 65–79 carry a mortgage.
In addition, seniors are living longer than previous generations. All this adds up to a tough reality, funding longevity is hard. However, there is a smart way to afford retirement, and live without a monthly mortgage payment*: A Home Equity Conversion Mortgage (HECM.)
To qualify for a government-insured HECM at least one borrower must be 62 or older, the home must be your primary residence, and you should have 30–60% equity. A HECM eliminates your monthly mortgage payment, which can be a real burden if you’re on a fixed income. A HECM is a non-recourse loan, meaning even if your home loses value due to a market downturn, you or your heirs can never be “under water.”
Just to clarify, you are the only one who owns your home and its equity. The bank does not. The HECM is not repaid until the last borrower leaves the home.
We all want to live a long, healthy, independent life. With a HECM in place, aging-in-place is possible! Call me, your Reverse Mortgage Specialist, today to see if a HECM can help you fund your retirement.
* The homeowner is still responsible for applicable property taxes and homeowners insurance, as well as maintaining the property.