HECM ARM Line of Credit

Most of us who buy a home do it for long-term security and to build net worth. You’ve worked hard to accumulate wealth for retirement. A HECM Line of Credit is the only way to get a cash return on your home while you are living, and one way to guarantee you can maintain it as you age.

You’re probably used to thinking of your home as a valuable asset. However, a home is still a significant expense, even without a mortgage, and the value of the asset means nothing until you sell it or pass away.

Springwater Capital provides strategic retirement options available through its adjustable-rate Home Equity Conversion Mortgage (HECM).

Click here for an illustration and example of how the line of credit growth feature works.

Benefits of an HECM ARM Loan

  • Access to optional, growing line of credit—discretionary cash as you need it
  • Freedom to modify your disbursement option at any time
  • Increased borrowing capacity with a growing, non-taxable line of credit
  • Never owe more than the value of your home
  • Greater financial freedom and financial independence — age in place

Interesting Points About Your Home Value

It’s interesting that few consider what they’ve invested in their homes to the point where the mortgage is paid off. It’s even more interesting that few realize that their home depletes valuable income for taxes, insurance, maintenance, and care.

Don’t let your home be an expense. Make that asset work for you.  Let's look at a single example using estimates we've put together based on our own experience. You can use this example to consider what you've personally put into your home.

A $300,000 home may cost up to $850,000 over 30 years. Although the mortgage is paid off, taxes, insurance, and maintenance continue.

In addition to taxes, insurance, and yard card, HSH.com estimates annual maintenance expense at 1% of a home’s value. In this case then, you can plan on $6,000+ per year.

The HECM ARM gives you a way to draw on the value of the home for maintenance and other needs. It’s insurance that assures that you can age in place.

reverse mortgage

A HECM Line of Credit using a variable adjustable rate (ARM) program is a unique and strategic way to diversify and prolong the value of your retirement portfolio.

A HECM Line of Credit has a guaranteed growth feature on the amount left in your principle limit. This means no matter what the economy does, or how rates change, your line of credit will grow monthly at a rate likely greater than most investments, without risk, and without tax consequence. The longer it sits unused, the larger the line grows.

Click here for an illustration and example of how the line of credit growth feature works.

HECM Line of Credit

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