Achieve diversification, increased liquidity, and financial peace of mind by using a HECM for Purchase to buy a new primary residence.
Instead of solely focusing on downsizing as we age why don’t we expand on this thought and make it a financial strategic transaction as well. Many people, as they retire, think that buying a home with all cash is the safest and possibly only answer. This may limit your ability to buy the home that is the best fit for you. It may be a better option to utilize a HECM for Purchase so you don’t have a large percentage of your cash tied up in your home. It’s all about not putting the majority of your eggs in one basket. Diversification, when considering downsizing or a lateral move with a new home, is a financially sound and tested strategy that should be used for all those eligible over the age of 62.
By keeping a mindful eye on diversification, you create increased liquidity. This is very important because it not only provides a safety net but it also gives you options. You are now positioned with more funds at your disposal and the increased cash flow from not having to make a monthly principal and interest payment to your mortgage lender adds to the equation. Conversely, if you have limited liquidity you are not in a good position to take advantage of opportunities or respond quickly in the event of a critical need. Liquidity directly points to added peace of mind.
The first thing that comes to mind when I think of liquidity is financial security. We all, regardless of how much money we have, will worry if we have enough. There is a pervasive fear embedded within us all that we may outlive our resources. This is something that may never go away but that can be dealt with constructively. A HECM for Purchase will help you in this regard and achieve peace of mind.
Consider a HECM for Purchase as a planning tool when you buy your next home. Achieve diversification, increased liquidity, and a more financially sound lifestyle. You must be at least 62 years old and have a suitable property that meets FHA guidelines to be eligible for a government insured HECM for Purchase or HECM Reverse Mortgage. To learn more about a HECM for Purchase, click here.
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George H. Omilan