Page 24 - AreaNewsletters "Feb 2022" issue

B US I N E S S & F I N A N C E
HECM vs.HELOC
Home Equity Conversion Mortgage
Plan a more rewarding retirement
A HECM (Home Equity Conversion Mortgage) isn’t just an attractive way to leverage your greatest asset – it’s a smart and safe retirement strategy too. You see, a HECM is a reverse mortgage insured by the Federal Housing Administration (FHA). It’s a type of home equity loan, but instead of requiring monthly mortgage payments,* the loan balance is repaid when you leave the home. You get to use the money however you want and any unused line of credit grows over time. Best of all, you continue to live in and enjoy your home.
HECM vs. HELOC: decoding the acronyms
Now that you understand a HECM, let’s compare it to a HELOC (Home Equity Line of Credit). A HELOC is a great nancial tool, with low fees, that allows you to use the equity in your home to accessfunds.However,itisrarelytheoptimalchoiceforsomeone in retirement. Notice the distinct differences between the two. (Refer to the graph)
Home Equity Line of Credit
*Theborrowermustmeetallloanobligations,includinglivinginthepropertyastheprincipalresidenceandpayingpropertycharges, including property taxes, fees, hazard insurance. The borrower must maintain the home. If the homeowner does not meet these loan obligations, then the loan will need to be repaid. Elective payments are acceptable and will not incur a pre-payment penalty.
We at Fit Lending are reverse mortgage specialists and are here to assist you as you explore your options and whether a reverse mortgage solution is right for you. Our goal is that as you learn more about the reverse mortgage you have all the information you need to make the best decision for you and your family. We aim to provide world class service from start to nish.
Now in The Meadows
Castle Rock’s
ONLY
• Same skilled technicians, same friendly helpful service!
• Now o ering in and out of warranty service for Mac, iPhone, iPad, iPod, AppleTV & Beats Audio.
• Faster turn-around than ever! We use only genuine Apple parts shipped overnight.
Please visit us at our new location: 3855 Ambrosia St., Castle Rock, CO 80109
jackbeclick.com
303-395-0842
February 2022 • Castle Rock “AreaNewsletters”
24