Reverse Mortgage Advantages
If you are looking for immediate cash flow this type of mortgage product could be exactly what you need. With increased regulation in the past few years it is a much more viable option. A home equity conversion mortgage, or HECM, allows seniors to withdraw some equity out of their homes. The loan is repaid once the borrower dies or moves out.
Here are the top advantages to a HECM:
- Access to cash
- Eliminates a monthly mortgage payment
- Extends the life of other retirement savings
- The value of a reverse mortgage loan can increase
“The reverse mortgage is probably one of the most misunderstood programs out there, but when most people who don’t understand how it works learn about it, the most common thing they say is, ‘Why doesn’t everybody get one?’”, Richard Mandell of One Reverse Mortgage says.