Astute homeowners across Florida and the USA are taking advantage of a new FHA insured product to establish a line of credit to use to complement their existing retirement portfolio.
Research from the Boston College’s National Retirement Risk Index 2010 has stated that few will be in a position where they do not have to use their home equity at all in their retirement.
The question posed then is when are the smart people doing it?
The federally insured HECM Adjustable is a home equity conversion mortgage that allows you to establish a line of credit that grows over time, secured against your property.
Once considered a product to be used only when savings run dry, the Journal of Financial Planning state there is a major advantage in taking out a HECM Adjustable as soon as possible, locking in the growth of the credit line early so it grows larger over time.
In fact, using the traditional financial planning “Monte Carlo” methodology, they state there is a 31-year wealth survival advantage to setting up the HECM Adjustable at 62, instead of waiting until your investment portfolio is exhausted.
The study states that this advantage may be increased further if interest rates were to rise in the future, which is generally considered inevitable.
By having another source of funds to draw on in retirement, you have the flexibility to manage your investments properly, without daily cash needs forcing you to make wrong decisions.
Anything you do draw with the HECM Adjustable can be repaid penalty free at any time.
To find out more about how the HECM Adjustable works, please call us on
1-800-792-1936 or e-mail saver@responsiblereverse.com
Alternatively, you can use the calculator below to find out your maximum limits under the HECM program.
Responsible Reverse Mortgage Inc is a licensed Florida Mortgage Broker incorporated in the State of Florida and has its registered address at: P300, 515 N Flagler Drive, West Palm Beach, FL 33401. NMLS#1212765
Reverse Mortgages are neither “endorsed” nor “approved” by the Federal Government. The FHA (Federal Housing Administration) provides certain insurance benefits for lenders and borrowers in connection with the lender’s HECM loans; the FHA does not make or originate loans.
