Why Haven’t Senior Homeowners Been Told These Facts?
Better read this if you own a home in the U.S. and were born before 1954.
It’s a well-known fact that for many senior citizens in the U.S. their home is their single biggest asset, often accounting for more than 50% of their total net worth.
Yet, according to new data from the National Reverse Mortgage Lenders Association, senior homeowners in the U.S. are now sitting on more than 5 trillion dollars of unused home equity.1 With people now living longer than ever before and home prices back up again, ignoring this “hidden wealth” may prove to be short sighted.
All things considered, it’s not surprising that more than a million homeowners have already used a government-insured Home Equity Conversion Mortgage or “HECM” (more commonly known today as a reverse mortgage loan) to turn their home equity into extra cash for retirement.
However, today, there are still millions of eligible homeowners who could benefit from this FHA insured loan but may simply not be aware of this “retirement secret.”
Some homeowners think HECM loans sound “too good to be true.” After all, you get the cash you need out of your home but you have no more monthly mortgage payments.
NO MONTHLY MORTGAGE PAYMENTS?2 EXTRA CASH?
It’s a fact: no monthly mortgage payments are required with a reverse mortgage loan;2 the homeowners only have to pay for maintenance, property taxes, homeowner’s insurance and, if required, their HOA fees.
Another fact many are not aware of is that HECM reverse mortgages first took hold when President Reagan signed the FHA Reverse Mortgage Bill into law 28 years ago in order to help senior citizens remain in their homes.
Today, HECM loans are simply an effective way for homeowners 62 and older to get the extra cash they need to enjoy their retirement.
Although today’s HECM reverse mortgages have been improved to provide even greater financial protection for homeowners, there are still many misconceptions.
For example, a lot of people mistakenly believe the home must be paid off in full in order to qualify for a HECM reverse mortgage loan, which is not the case. In fact, one key benefit of a HECM is that it automatically pays off your existing mortgage, which frees up cash flow, a huge blessing for seniors living on a fixed income. Unfortunately, many senior homeowners who could benefit from a HECM loan don’t even bother to get more information because of rumors they’ve heard.
That’s a shame because HECM reverse mortgages are helping many senior homeowners live a better life.
In fact, a recent survey by American Advisors Group (AAG), the nation’s number one HECM lender, found that over 90% of their clients are satisfied with their reverse mortgages.
While these special loans are not for everyone, they can be a real lifesaver for senior homeowners like Betty Carter, who recently took out a HECM loan with AAG so that she could finally get the extra cash she needed to fix up her house.
“With the help of AAG, I have been able to repair my home’s foundation that I had been putting off for several years, refinish the hardwood floors, paint the interior and will have the exterior painted within a few days. My house is starting to look like my home again and it feels good,” says Carter.
The cash from a HECM loan can be used for any worthwhile purpose. Many people use the money to save on interest charges by paying off credit cards or other high-interest loans. Other common uses include making home improvements, paying off medical bills or helping other family members. Some people need the extra cash for everyday expenses while others simply use it as a “safety net” for financial emergencies.
If you’re a homeowner age 62 or older, you owe it to yourself to learn more so that you can make an informed decision. Homeowners who are interested in learning more can request a free 2016 HECM Reverse Mortgage Information Kit and free Educational DVD by calling American Advisors Group toll-free at 1-866-584-2703.
At no cost or obligation, the professionals at AAG can help you find out if you qualify and also answer common questions such as: 1. What is the government’s role? 2. How much money might I get? 3. Who owns the home after I take out a HECM loan? You may be pleasantly surprised by what you discover when you call AAG for more information today.
FACT: In 1988, President Reagan signed the FHA Reverse Mortgage bill into law.