Retirement today is not what it was for past generations. Today it is measured in decades, not years, and no one can know what will happen over decades. The Retirement Mortgage (HECM) may be the most powerful tool that you are not using to make your retirement more secure.

The Retirement Mortgage might just be the best name given to the HECM program ever. It is that simple, as we get older our incomes tend to go down and our expenses tend to go up. So the Retirement Mortgage (HECM) was put in place to help homeowners make their retirement years more secure. It has been around since the late 80’s and has helped millions of seniors live a better life.

The loan is truly unique! You do not have to make monthly payments on the loan, you could if you wanted to but you don’t have to anymore, ever. When the homeowners die the home is left to the heirs and those heirs can either refinance the loan or sell the house and keep all of the equity. Think about that for a moment. If you switched your current mortgage to a HECM, you could decide if and when you make whatever payments you choose…but you never have to make a payment with this loan.

So the HECM allows people who are 62 to borrow against the equity in their homes, with no obligation to repay the mortgage as long as they occupy the house as their primary residence. You can even rent a room out and make income that way too!

The impact of this loan can make your life so much easier. You can now take the money you are saving on your mortgage payments and put that into your bank account. Imagine if you redirected the bank payment to your own bank account………..how much more money would you have? In addition the money is tax-free. If you are withdrawing money from a 401K or IRA that money is taxed as ordinary income. It is always better to be using tax-free money instead of having to pay taxes on funds, it is a no-brainer.

This is just the beginning of what the Retirement Mortgage (HECM) can do. This program also offers a simple Line of Credit that is guaranteed to increase every year and you can tap whatever you need to. Having access to money when you want it is pretty comforting and allows for better sleep at night. The overriding point is that this loan is safe and there is nothing wrong with it. Congress passed it into law, HUD regulates it and the FHA insures it, yes it is that easy.