These are the most frequent comments we hear before we even begin conversion with those who know little about the HECM program. There are great questions, including thoughtful and insightful answers, found on our Frequently Asked Questions page. If you don't see your concern or question here or on the FAQs, please reach out to us by phone or here.
myth   THE LENDER WILL OWN MY HOME
You remain owner of the home and can live in it as long you meet the terms of the loan, and you can sell it for its remaining equity at any time that you like.
Your home passes to the heirs to decide whether to pay off any existing loan balance, or to sell it for the remaining equity, or to walk away without any recourse to them.
Springwater Capital works closely with you, your family, and financial planner to make sure you undertand the terms of the loan and its effects on the value of the estate.
myth   YOU'RE TAXED ON LOAN PROCEEDS
Reverse Mortgage loan proceeds are tax free as it is not considered income. However, it is recommended that you consult your financial advisor and appropriate government agencies for any effect on taxes or government benefits.
myth   REVERSE MORTGAGE LOANS ARE EXPENSIVE
This can be very true depending on circumstance and your lender. There are ways to reduce costs dramatically. So make sure you work with a lender of integrity. Rates are typically 0.5% higher. Fixed and variable rate loans are available. We encourage you to read What does it cost? under our FAQs for great insights into this question.
myth   YOUR CANNOT HAVE AN EXISTING MORTGAGE
More than half our clients not only have an existing mortgage to pay off, but some are in the middle of a foreclosure and save their home using a reverse mortgage.
myth   ONLY THOSE WITH HARDSHIPS USE A HECM LOAN
Everyone over age 62 should take time to learn about how a reverse mortgage really works. In the past reverse mortgages have made a significant impact in the lives of those who had mortgage debt or limited retirement funds. However, it’s a surprise to many that a HECM is used even more as a strategic retirement option for those who have adequate resources elsewhere and especially those who want to maximize those retirement resources. If you care about the return you get on any of your investments you’ll want to learn about a HECM.
GET EDUCATED BY CREDIBLE SOURCES
Springwater Capital is an accredited firm that knows the laws and latest HECM strategies. Use the free education we provide you, verify it with a HUD Counselor, and then work with your financial planner to make a decision that is right for you.