FirstBank’s Home Equity Conversion Mortgage in Nashville helps to provide seniors who are 62+ and own their home an option to help supplement their retirement income or bolster their retirement plan. Below we have listed some of the pros and cons of a HECM.
Pros of a Home Equity Conversion Mortgage in Nashville
- Flexible mortgage payments or no payments at all. You are in control
- Homeowner maintains ownership and stays in their home
- Flexible options for disbursing equity: either a line of credit to draw from or a payment sent to you each month to supplement income
- Money received from the HECM is Tax-free
- Once set up, future housing market declines have no effect on the money available to you in the line of credit nor can they affect any monthly payments you are receiving
- You nor your Heirs can ever owe more than what the home is worth. Both are protected by the MIP
- Heirs inherit any equity after the HECM loan has been paid off.
Cons of Home Equity Conversion Mortgage in Nashville
- Many people do not understand how a HECM in Nashville works. This includes trusted advisors such as CPA’s, Financial Advisors, and Attorneys as they are not required to take reverse mortgage training to obtain their licenses.
- Heirs inheritance could decrease
- Means tested government programs could be effected if the HECM is not structured properly. (There is however no effect on Social Security or Medicare)
**It is recommended that you discuss any of these with your loan officer.