If you’re like many in North Texas, then your home takes up a significant part of your net worth. While this has always been viewed as a helpful way to grow wealth, it means that you cannot access these funds simply whenever. Unless you plan on selling your home, in order to use your home equity to your advantage, you would need something like a line of home equity credit. These do not always make sense for people, but what are your options?
Thankfully, for those who have reached the age of 62, there is another way, and our team at Family Home Loan Texas in Frisco, TX can help you to make sense of it all. With a HECM loan, you can convert your home’s equity into capital that you can use how you see fit. This is a form of reverse mortgage that has the backing of the Federal Housing Administration, helping you to have a secure and trustworthy home equity conversion loan. To find out whether a HECM loan is right for you, give us a call and talk to our team today!
What Is A Home Equity Conversion Mortgage?
In short, a Home Equity Conversion Mortgage is a special type of reverse mortgage that has been insured by the Federal housing Administration. Like other reverse mortgages, these are designed to help older individuals use all of their financial resources to their advantage while they still reside in the home. As with other forms, this is a simple non-recourse loan that does not need to be repaid until the home is sold or the homeowners decide to move out of the residence.
HECM loans are rapidly becoming a staple in the world of financial management for seniors. These allow people who have reached the age of 62 to do more with their money, so it might be worth it for you to talk to your financial advisor about whether they meet your needs.
How Can A HECM Be Used?
There is a range of ways that HECM loan proceeds can be useful for older individuals. For example, those who are looking to retire in place might want to make some adjustments to their home in order to make life easier, such as a wheelchair ramp or handrails. They can also be used for the purchase of a second home, closer to the grandkids!
Learn More About HECM Loans With FHL Texas
If you are ready to talk about your financial future, take the time to meet with our team. To find out more about how seniors are using HECM loans to convert their home equity, call FHL Texas in Frisco, TX at (214)447-7575!
