Different financial products have entered the spotlight over the years. Mutual funds were one, another was ETFs and later came the annuity craze. Lately, HECM loans have generated quite a bit of interest. This provision is available to senior citizens who would like to leverage equity that’s tied up in their home. Retirees often don’t have many options for increasing their income, and medical bills can put increased financial pressure on seniors. For many, selling a home to cash out isn’t an attractive option. The following are three ways a reverse mortgage lender can help you tap into your personal goldmine.
Monthly Payments
Are monthly payments right for you? For many, this is the preferred distribution method for supplementing other sources of income. Your earnings are guaranteed, making it easy to plan your budget.
Lump Sum
Does extracting as much equity as you can at once appeal to you? If you have another investment in mind, sometimes a lump sum is the way to go. It’s also the choice that some make when they want to buy another property and pay down the principal as much as possible at closing.
Line of Credit
Are you ready to increase your purchasing power? A line of credit may be just what you need to take care of that big home-improvement project. Whether it’s a kitchen remodel, room addition or backyard barn, you’ll be making your home more comfortable while adding value to it.
Be sure to talk to your reverse mortgage lender about the terms of the product they’re offering. This type of loan is very enticing but keep in mind that each person has their own unique circumstances. All in all, though, its options make it a versatile tool that can be used to meet the needs of various lifestyles.
