Home Equity Conversion Mortgage

There are several advantages to having a federally regulated agreement as opposed to a privately funded mortgage. We offer a variety of payment plans, and in any case, you can count on the loan to be repaid by the sale of your home. We can also customize your arrangements for the loan to make it easier on you. We can help formulate lump sum payments or monthly installments based on your preferences. We can also assist in finding options with minimal interest and work within your line of credit. Retirement planning has never been less stressful.

One of the most overlooked yet beneficial features of the HECM is the line of credit. Unlike traditional home equity lines of credit which can be closed or reduced, this special credit line is secured and cannot be reduced if home values decrease or if interest rates increase. Many homeowners, like you, have set up the line of credit for use by the surviving spouse to offset a loss of income and much more. With the HECM line of credit, you are only charged interest and insurance on the funds that you use in your HECM loan. Your financial planner may consider strategic withdraws with outlined strategies where retirees may choose to use part of their credit rather than take income from investment accounts whose value may be declining in a given year. The HECM line of credit is available when you need it.

When you know the value of mortgages available to you and the payment options, you are better equipped to organize all of your finances. Loans can be paid out in lump sums, lines of credit or monthly installments. You can use this to pay regular bills, overcome financial crises or just supplement your income. The simple act of removing your monthly mortgage payments goes a long way to improving the stability of your cash flow. The borrower must occupy a home as a primary residence and is responsible for payment of property taxes, homeowner's insurance, the costs of home maintenance and any HOA fees. Dan can help you look at the long run to make sure you optimize your choices.

We can ensure you a plan that meets your financial needs. Our expertise with federal and state regulations mean that you can apply for a HECM in Santa Cruz, Monterey, San Jose or Campbell with the confidence that your finances will be secure. You don't need to keep struggling with monthly bills when solutions are available. Please call us at 831-423-2900.