4 strategies to stretch your HECM dollar further

How, when and why to take a reverse mortgage

A major and potentially valuable feature of the Home Equity Conversion Mortgage (HECM) program is that it offers multiple options regarding how a senior can withdraw funds, as well as the flexibility to switch from one option to another as one’s circumstances change. This makes the HECM a potentially valuable component of a senior’s retirement plan.

However, most seniors are selecting an option to cash out the entire equity in their house at the outset, which eliminates other options (unless they later repay some of the money they withdrew), and may leave them with nothing to fall back on if they need help in later years.