“Used strategically, a HECM Line-of-Credit can greatly improve the sustainability of your retirement income.”
Wade Pfau, PH.D. Princeton Professor of Retirement Income at the Financial & Retirement Planning program at The American College of Financial Services
A Home Equity Conversion Mortgage (HECM) is a reverse mortgage insured by the Federal Housing Administration (FHA) that can be used to enhance seniors’ quality of life.
Here are just a handful of reasons why you should consider a reverse mortgage to help gain financial security:
1. Helps seniors who are financially sound, have paid off their mortgage and would like additional money to enhance their retirement or quality of life.
2. Refinance a traditional mortgage into a “payment optional” reverse mortgage credit line.*
3. Standby portfolio protection by drawing from or replenishing a reverse mortgage credit line in up and down markets.**
4. Purchase a retirement home, investment property, upsize or downsize with a reverse mortgage for purchase to increase monthly cash flow and free up funds for investment. (Note: Not available in all areas)
5. Protect home equity from nursing home expenses for the next generation.
6. Grow and increase cash availability with a reverse mortgage credit line.**
7. Bridge the Medicare gap from age 62 to 65.
8. Delay Social Security payments until later in retirement to increase monthly cash flow.
9. Use as a wealth multiplier when insurance products are used to pass a larger nest egg to the next generation.**
10. Tax management tool to receive deductions when needed or to withdraw less from IRAs and other taxable.
*Still responsible for taxes, insurance, and maintenance.