There are many advantages of a HECM mortgage. If you have an existing mortgage payment, you can pay off your balance and stop making monthly payments. A HECM gives you have the freedom to spend your proceeds however you choose, and the HECM Loan proceeds are nontaxable income. With a HECM, you can stay in the home and the title remains in your name until you choose to sell or move out. If you are making plans for retirement, with a HECM you can afford to stop working when you decide the time is right. If you have medical bills, you can pay them off now and stop worrying about how to afford them.
Most people consider a HECM to be the best reverse mortgage choice. A HECM loan gives you the option to stay in your home without making mortgage payments and to have some additional income if you choose to. There are many benefits of a HECM, but you should make sure that it’s the right option for you before you apply. One important consideration is taxes. In order to qualify for a HECM, you will need to be able to cover all of your expenses and your property taxes as well as your homeowners insurance.
Many of the reviews of HECM loans discuss the benefits and the possible risk. Of course there are Pros and Cons of reverse mortgages. For example, your heirs may want to keep the home without paying off the loan in the event of your death. If you want to convert your equity, and if there is enough equity to convert to cash, you will need to decide how much you want to access now and how much equity you want to leave your heirs.
Stop Paying Your Mortgage
If you want to know how you can stop paying your mortgage, you should call and discuss your options with one of our professional team members today. If you’re also looking for cash out in the form of monthly HECM payments, you may have that option as well. If you are short on disposable income, a HECM will allow you to cover your needs and give you some much-needed breathing room.
If you are trying to decide whether to apply for a HECM or refinance your mortgage, keep in mind that a refinance option still requires you to make monthly payments whereas a HECM does not. One of the main benefits of a reverse mortgage is that you do not have to make monthly payments. In addition other benefits include staying in your home and keeping title in your name. A HECM gives you the option of taking cash out without having to pay it back right away and having the freedom to spend the cash anyway you want. With a HECM, you do not have to pay any taxes on any cash that you draw.
Pay off Outstanding Debts
You can use the proceeds from a HECM if you have medical debt or if you have recently been diagnosed with an illness that requires treatment that you must cover out of pocket. If you have to pay for expensive treatment that’s not covered by insurance, a HECM could be a great solution for you. With a HECM, you can Use the equity in your home to pay off loans or credit cards or even college tuition or other debt.
There are no restrictions on how to use your cash with a Lump sum payment from HECM proceeds. One of the many advantages of the HECM is the freedom it gives you to pay off your outstanding debts and to stop making monthly payments on credit cards and loans with higher interest rates. At ConvertYourEquity.com, our team takes the time to understand your goals and help you reach them. We are a reverse mortgage company with a team of professionals who care about you and want to make sure that we offer the best option for you
How to Apply
The best way to get started with your application for a HECM is to pick up the phone and talk to one of our team members today. We will discuss your needs and goals and the benefits of a HECM mortgage as it applies to you. Whether you are looking for the money to pay for retirement with your equity, or stop paying your mortgage, our HECM broker will guide you through the application process. We are available to meet with you and help you to achieve your goals. Call us today and let’s get the process started.