AgentMortgage

4 strategies to stretch your HECM dollar further

Future-Proof: Navigate Threats, Seize Opportunities at ICNY 2018 | Jan 22-26 at the Marriott Marquis, Times Square, New York

Editor's note: This is the fifth in a six-part series. Read Part 1, Part 2, Part 3 and Part 4. 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. The HECM options that can significantly strengthen a retirement plan are being used by very few. The seniors who could use these options advantageously, unlike many who select the all-cash option, are not driven by immediate financial pressures -- their financia...