These days, many people hold a significant amount of their net worth in their home equity. While this can be a stable way to manage and grow your wealth, it can also mean that you have less access to the funds when you need to use them. Here in North Texas, home equity plays an outsized role in wealth management, and knowing how to use it to your advantage can be a plus. One option is a HECM loan reverse mortgage, which can help to convert your home equity into cash that you can use in a variety of ways.
Here at Family Home Loan Texas in Frisco, TX, we understand the importance of a flexible retirement. If you are looking for a way to control your finances, unlocking the funds within your home equity could be a solution, so talk with your financial advisor to see if this is an option for you and your family. HECM loans are only available to those who have reached the age of 62, and they are becoming a suitable choice for many seniors to find new financial flexibility!
What Exactly Is A HECM Loan?
A HECM loan is a particular form of reverse mortgage that is insured by the Federal Housing Administration, and these are only available in certain instances. These must come from an FHA-approved lender, and those looking for them must have reached the age of 62. HECM loans help you to convert your home equity into cash, which can be a benefit in a number of ways.
The amount available through a HECM loan depends on the appraised value of the home, as well as the age of the youngest borrower. Talk to a trusted team to understand more about your limits, and whether this is the right move for you and your family.
Convert Your Home Equity Into Capital That You Can Use
For many seniors, having their net worth stashed in their home can bring stability and growth to their financial portfolio. While there are decided advantages to this approach, it also means that unless you switch houses every so often, there is not much that you can do with your money.
As our older population looks to grow their retirement account, freeing funds from their home equity can sometimes make sense. HECM loans can help you to purchase a second home for rental income, so ask about whether it is a sound financial move to convert your home equity into a down payment for a second home.
Find Out More With FHL Texas!
If it is time to hear more about how a reverse mortgage works, talk to our team about your options. To find out more about a HECM loan can help you to convert your home equity into cash, give us a call at FHL Texas in Frisco, TX by calling (214)447-7575!
