![]() For one, the lender can reduce, call, or cancel the line of credit at any time this cannot happen with the HECM program. ![]() Replace a home equity line of credit (HELOC) – A traditional home equity line of credit, although “free” to set up, has a few drawbacks. (Note that the program has changed to allow a second borrower to be under age 62 and be on the loan, but understanding and care must be taken before making this decision.) I will outline a few quick ideas we have researched and find credible-we are working on many more. Even if you feel you are wealthy, the program can contribute to your future financial well-being. So how can this help you? If you and your spouse or co-borrower are over 62, you are eligible to qualify. Beware, of course, that any funds used are a debt and have to be repaid at some point-it is, after all, a loan. The portion of the upfront fee to FHA and ongoing charges if funds are borrowed are used to make the loan nonrecourse, meaning that upon sale or death the amount due will not exceed the market value of the home. Payback of the mortgage is flexible the loan can be paid back at any time, but any borrowed funds plus interest are ultimately due upon sale or death of the homeowner (the owner or owners on the mortgage). Lump Sum – A larger distribution from the home equity, often used for issues such as large home maintenance, paying off a traditional mortgage, etc.Monthly Payments – These payments, known as tenure payments, essentially convert home equity into annuity-like payments for as long as the owners remain in the home.The credit line can be borrowed against, and paid back with flexibility. Line of Credit – The unused credit line actually grows over time, allowing a higher benefit in later years.The HECM program can provide three main ways to utilize the equity built up in your home: In fact, the HECM program has been the focus of my research for the past few years as a faculty member of Texas Tech’s Personal Financial Planning program, where we have been searching for its possible uses in retirement planning to make sure you are able to sustain your standard of living for the rest of your life. If you are up late at night, you might have seen the TV commercials with your favorite stars of yesteryear and thought that reverse mortgages were only needed if you had nothing left-a last resort whenever every other option has been exhausted.Ĭhanges to the FHA insured Home Equity Conversion Mortgage, or HECM, have changed the face of the reverse mortgage we once knew, opening the mortgage up to many more possible uses. I hereby release and hold the Company harmless from any adverse consequences relative to any failure by me to keep the identity of my password secure. I agree not to share my password with any other person. I also understand that I will be assigned an individual password. I understand that the password-protected section is a secure web site intended only to allow a client access to information relative to his/her/its specific account. This authorization shall continue until canceled in writing. ![]() This password-protected access is made available to clients of the Company free of charge. ![]() I understand that my participation will allow me to review certain investment-related information published by the Company and unaffiliated third parties. Evensky & Katz / Foldes Wealth ManagementĪs a client of Evensky & Katz / Foldes Wealth Management (“Company”), by selecting the “I Agree” button, I elect to participate in the password-protected access portion of the Company’s Internet web site. ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |