As I talk with more new clients, realtors and financial planners as well as teach classes about the Home Equity Conversion Mortgage (HECM) also commonly referred to as a reverse mortgage, most are surprised that a HECM offers a wide array of options for everyone that can be tailored to specific needs of the borrower.
Are you needing to bulk up a fixed monthly income? Perhaps you’d like to travel more in retirement, but need some extra funds to help you hit the road. Or maybe there are health concerns and you need help covering the costs of in-home care. You can also use a reverse mortgage as a safety net for retirement accounts, or to delay dipping into a 401K.
No matter your reasons for securing a reverse mortgage, you’ll have plenty of flexibility.
Payout Options For Everyone
With a reverse mortgage, you pick the option that’s best for you.
Term payments are fixed monthly payments for a set timeframe. This means every month, for a set amount of time, you can expect a predictable payment until the term is up. It’s a consistent way to bulk up your fixed monthly income, and budget it accordingly. Note that the amount of each monthly payment is relative to the length of time term payments are set; for example, a shorter five year term payout will be larger than a 30 year term payout.
A similar, but potentially smaller sum per month is the tenure payment option. The difference between this and term payments is the fact that you will continue to receive a payment every month that you live in your home, rather than for a fixed period of time.
Establishing a line of credit with a HECM is valuable in many situations, and tends to be an attractive option for those looking at a reverse mortgage as a safety net for rainy days, big travel plans or other scenarios that could arise. Funds can be accessed easily on request on an as-needed basis. One of the biggest advantages of this payout is the fact that the unused portion of the principal limit (amount available) is guaranteed to grow over time.
Sometimes it’s just a lump sum payment that can work best for your situation. Whether you’re paying down debt, making home modifications or hitting the open road, the important thing is to know that a reverse mortgage can be there when you need it.
Keep in mind many of these options can be combined, specific to you.
It Can Help You Finance A New Home
There are many reasons you might want to find a new house after age 62. Perhaps it’s downsizing, a desire to be closer to family, or just a change of scenery. Whatever the reason, HECM for purchase is yet another flexible option that could mean you can live in a new home with an estimated 50% down and never again have to make a mortgage payment.
To find out more about how a Reverse Mortgage can work for you call Melinda Hipp , CRMP with Open Mortgage at 210-493-7332, email at firstname.lastname@example.org or visit texasreverse.net to learn more.
More about Melinda Hipp and Open Mortgage -
Melinda Hipp is Branch Manager with Open Mortgage|San Antonio and specializes in working with senior homeowners 62 and over who would like to access the equity in their home through a Reverse Mortgage. She has handled hundreds of satisfied Reverse Mortgage clients over the past ten years with many raving fans. She and her team are dedicated to giving you boutique service, a quick closing and personalized customer service.
Melinda regularly provides training to local real estate professionals and holds the designation of MBA, CRMP (Certified Reverse Mortgage Professional) and CMC (Certified Mortgage Coach.) Melinda is also an active member of NRMLA (National Reverse Mortgage Lender’s Association). An avid golfer, Melinda was a charter member of the San Antonio Chapter of the Executive Women’s Golf Association. She is currently a member of the National Reverse Mortgage Lender’s Association, Women’s Council of Realtors, San Antonio Board of Realtors, CRS and a board member of Golf San Antonio.
Melinda Hipp, CRMP | NMLS #219085
17721 Rogers Ranch Pkwy., Ste. 125
San Antonio, TX 78258
Toll Free: 844-265-5513