What is an Equity Release Loan?
With 70,000 baby boomers per month entering their 60’s, the lenders for Equity Release programs or Reverse Mortgages (Home Equity Conversion Mortgage – HECM) are cranking up their advertising.
The Reverse Mortgage is advertised with benefits that sound very attractive.
Its primary purpose is to generate unnecessary fees and commissions for the lender, which we will talk about in our next article.
Reverse Mortgage Enticements
- If you are a home owner of 62 or older, a Reverse Mortgage can give you the retirement you deserve.
- The Reverse Mortgage is a government insured loan that turns your home equity into tax free cash. (The amount borrowed is a loan and there is no taxation when you take out any loan.)
- You never have to make another mortgage payment as long as you live.
- Get the mortgage off of your back for better cash flow – No More Payments!
- The money does not affect your Medicare, Medicaid or Social Security. (Yes, it can)
- You cannot lose your house, because it is a Government insured loan.
- You still own your own home.
- The money can be used to cover health care, remodeling or just use the money for true financial security.
- Retirement the way you want it.
All of the above is true. There is no misrepresentation. It is a good product, but is it the right product for everyone?
Positive Features of a Reverse Mortgage
There are legitimate reasons why the Reverse Mortgage, or Equity Release Loan can help meet desires and needs.
- The desire or need to eliminate monthly payments on perhaps more than just the mortgage.
- This feature can be important when cash flow needs to be increased.
- The desire or need for available cash or line to cover the short fall in retirement income.
- The desire or need to get access to the equity in your house without selling it.
- The desire or need to continue to live in your home during your retirement years.
- The desire or need to be able to cover unexpected medical costs, or the need to remodel the house in order to continue your occupancy in the house when medical issues limit your capability to move through the house and use its facilities.
There are definitely some positive features of a Reverse Mortgage – but this type of loan is not for everyone.
This “New Way of Thinking”will introduce you to a wonderful new tool, a strategy for accelerating equity through debt elimination which will help you secure your financial freedom.
If you’d like to learn about it right away…
You can have a free 1 hour consultation to discover your potential!
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