A Unique Retirement Planning Tool Flexibility & Peace of Mind Retirement should be a worry-free time of life. Unfortunately many older homeowners worry about having enough money to maintain their standard of living throughout their retirement years. Enter...
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A Unique Retirement Planning Tool Flexibility & Peace of Mind Retirement should be a worry-free time of life. Unfortunately many older homeowners worry about having enough money to maintain their standard of living throughout their retirement years. Enter the Home Equity Conversion Mortgage The Home Equity Conversion Mortgage (HECM) was created in 1989 to assist older homeowners in maintaining their quality of life and remain in their home during retirement. It is a unique loan in that no monthly mortgage payments are required yet it converts a portion of the home’s value into tax-free cash or a line of credit. Ace in the Hole: The HECM Line of Credit One of the most overlooked yet beneficial features of the HECM is the line of credit. Unlike traditional home equity lines of credit which can be closed or reduced, this special credit line is secured and cannot be reduced if home values decrease or interest rates increase. Even better the unused portion of the credit line increases each
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