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HECM Misconceptions

HECM Misconceptions

A Home Equity Conversion Mortgage, or a HECM, is probably the home loan product with the most misconceptions. If you 62 or older, these three HECM facts should help ease your mind as you consider your options.

1) You keep ownership of your home.

You retain the title and ownership of the home. It’s a lien against the property just like any other mortgage and you can sell your home at any time.

2) The proceeds can be used for various reasons.

Many borrowers use a HECM to supplement their retirement income, pay for medical expenses, modify their home, preserve their retirement funds, and so much more.

3) Seniors may benefit from an HECM.

The perception of the HECM as the loan of last resort is changing. Many affluent seniors are using HECMs as part of their financial and estate planning.

Learn more the HECM misconceptions on The Rhode Show

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