The Proceeds from a Reverse Mortgage Loan Can Help You Do That and More!
Here’s how:
The Home Equity Conversion Mortgage, or HECM, is the most common type of reverse mortgage loan.
HECMs convert part of a home’s equity into cash.
Because that cash is a loan, it is tax free, and borrowers can choose how they’d like to receive their payouts:
Credit Line with Guaranteed Growth | One-Time Lump Sum | Regular Monthly Payments | A Combination of the Above
Perhaps the best part is that HECMs do not require monthly payments. Instead, the homeowner needs to pay property expenses, such as taxes, insurance and maintenance costs.
Paying for Home Improvements and Surprise Medical Expenses
What Could You Do With a HECM?
HECMs Offer So Much More! Here’s a Preview:
No Changes to HomeownershipÂ
When a borrower takes a HECM loan on their home, they remain the sole owner of the home just as they were before. They can stay in the home or sell it as they choose.
Eliminate Existing Mortgages
If there is still an outstanding balance on the home’s mortgage, the HECM takes care of it. For those with paid off homes, the potential payouts are simply that much greater. Either way, the borrower simply needs to cover property expenses.
Flexible Repayment Options
Unlike traditional loans like HELOCs, HECM repayment is due when the last borrower vacates the home, and the loan balance is paid by the sale of the home, not by the borrower or heirs.
Protections for Peace of Mind
The Federal Housing Administration (FHA) guarantees the borrower (or heirs) will not pay out of pocket if the loan exceeds the home’s value at the time of sale. If there is a balance, it’s paid by mortgage insurance.
Why Work with Leslie and Movement Mortgage?
When You Work with Leslie, You Know:
Leslie has helped numerous seniors access the equity in their homes to improve their quality of life in retirement.
Many of His Clients Have Been with Him for 25+ Years
He Makes the Loan Process As Simple As Possible
He Believes in Custom Solutions—Not One-Size-Fits-All
Movement Is an “Impact Lender”
Any mortgage lender that commits at least 10% of its profits to helping the neighborhoods it serves is an Impact Lender. By giving borrowers the choice to have profits distributed to do good in communities, lenders can create deeper, more valuable connections.
At Movement, we are Impact Lenders. We give 40%-50% of our profits to making an impact in our communities. For us, purpose and people have always come before profit. And while we’re the first Impact Lender, we hope we’re not the only one. We invite all lenders to be Impact Lenders.
