How can seniors tap into their Home Equity
for a comfortable retirement?
Many seniors are looking to downsize their homes or tap into their California real estate equity. Whether the house is too big for them now or they need extra money for living expenses, they might qualify for a (HECM) Home Equity Conversion Mortgage. Utilizing a HECM, they can sell their existing house, downsize and buy a smaller but still comfortable new home. So why would a senior want to do that and utilize a HECM? – NO MORE MORTGAGE PAYMENTS and EXTRA MONEY IN THE BANK!
Downsizing example…
Current Value $1,000,000
Existing Mortgage $400,000
Sell and net about $600,000 profit
Buy a new home value $700,000
Down payment $400,000
Utilize HECM $300,000
Money in the bank $200,000 ($600,000/profit – $400,000/down payment)
And no more mortgage payments!
If downsizing is not desired, a HECM can be used for refinancing as well. In the original situation above, the client can get a HECM on the $400,000 and eliminate mortgage payments.
Both spouses (if applicable) stay in the property their entire lives. Ownership remains with the client and property passes to loved ones upon death with the option to sell the property or refinance out of the HECM.
- Jumbo HECM’s
- Easy money loans up to $10 Million
- Purchase loans up to $3 Million
- Cash out refinance up to $2 Million
- DTI up to 55%
- Credit score down to 600
- No payment shock calculation
- Interest only
- Stated Income
- Bank Statements only
- Easy money to close in 7-10 days
- Of course Fannie/Freddie and more…
