Many seniors are taking advantage of HECM loans, which are a federally insured kind of reverse mortgage. These are loans that help you to convert your home’s equity into cash, and these have become an increasingly popular solution for those who want to free up some capital from their home’s valuation. HECM loans are only available to those who have reached the age of 62, so if you are looking for a way to increase your savings in retirement, this could be the right time.
Our team understands how HECM loans have become an important avenue for older individuals to do a few different things, from increasing a retirement portfolio to investing in a second home for personal use. Some seniors are even using these as rental properties, so if you have been looking to find a way into passive income, this could be an option that allows you to make the money decisions. When you want to learn a little bit more about your possibilities, give us a call at Family Home Loan Texas in Frisco, TX!
What Is A HECM Loan, Exactly?
With all of the discussion around reverse mortgages, it is important to know how they work. These are loans that help people aged 62 or older to convert their existing home equity into capital that can be used for a variety of purposes. HECM loans are a specific form of reverse mortgage that is backed by the Federal Housing Administration, giving you the security that your solution is insured by the federal government.
There are some common myths and misconceptions about this process, so taking the time to meet with your financial advisor can be a great step. Our team is also available to help break down how reverse mortgage loans work so that you can make the decision that is right for you and your family.
Learning More About Reverse Mortage Loans
Reverse mortgage loans are bringing new possibilities to seniors who have reached the age of 62. For some, the boost in savings helps them to enjoy their retirement, while others want to use this capital to make an important investment. Both of these options are valid ways of using HECM loan proceeds.
One possibility that has become popular is the use of HECM loan proceeds to purchase a second home. Whether you are thinking about buying a place closer to your grandkids or renting a property, a reverse mortgage could be an option.
Find Out More With Family Home Loan Texaas
Knowing your possibilities is key in making the right decision. To learn more about the advantages of an HECM loan reverse mortgage, talk to our team at FHL Texas in Frisco, TX at (214)447-7575!