Page 9 - WSAAG052_Your Guide to Reverse Mortgages Booklet

5. Build a stronger safety net. 8. Protect my portfolio in a down market.

The best defense against unexpected Instead of being forced to sell an investment in a down market, you
expenses, such as medical emergencies, could wait for the market to rebound by using proceeds provided by
sudden market downturns and other life a HECM to make up any shortfall. Consult your financial advisor.
events, is to ensure you have financial
resources standing by to deal with them.
9. Create a lifetime income stream for my family and me.
A HECM loan gives you multiple payment options, including monthly
6. Gain greater peace of mind for my disbursements for life as long as you live in your home**.
long-term healthcare needs. **Available with Tenure-Based or Modified Tenure plans, so long as Borrower does not default
By creating a HECM line of credit, which on the loan. Borrower must maintain home as principal residence, pay all taxes, insurance,
maintain the home, and comply with all other loan terms. With Modified Tenure plans, lender
grows over time, you can have money for will set aside a specific amount of money for a line of credit.
your care when you need it.
10. Pay off other debt, like high-interest credit cards.
7. Purchase another home that will Using a HECM loan to pay off credit cards or other high-interest
better fit my needs. debt may prove a sound financial strategy. What a HECM shouldn’t
Instead of using all cash, put down only a portion be used for is an excuse to overspend or avoid addressing what
of the purchase price (from your previous caused the debt in the first place.
home’s sale or from other savings and assets)
and use a HECM to cover the rest, leaving you *You must continue to maintain your property, pay property taxes and homeowners insur-
with no future monthly mortgage payments*. ance, and otherwise comply with all loan terms.

Your Guide to a Better Retirement 9