Eliminate Mortgage Payments

One of the biggest financial stress-relievers in retirement is eliminating your monthly mortgage payment.

If you’re 62 (in some cases 55) or older and still making payments on your home, a Home Equity Conversion Mortgage (HECM) could help you refinance your current mortgage, eliminate the monthly payment, and even set aside extra funds in a growing line of credit—available for emergencies, income planning, or future needs.

Key Benefits:

  • No Required Monthly Mortgage Payments
    Use a HECM to pay off your existing mortgage and eliminate the monthly burden. (You’re still responsible for taxes, insurance, and maintaining the home.)

  • Stay in the Home You Love
    Many homeowners use a HECM to age in place, maintaining lifestyle and independence without having to downsize.

  • Create a Growing Line of Credit
    Any unused funds can be placed in a line of credit that grows over time, giving you access to more money in the future—even if home values decline.

  • Preserve Retirement Savings
    Freeing up cash flow by eliminating your mortgage payment allows you to preserve your savings, reduce portfolio withdrawals, or improve your monthly budget.

How It Works:

  1. You refinance your current home using a HECM loan.
  2. The HECM pays off your existing mortgage balance.
  3. You no longer make monthly principal and interest payments.
  4. If there’s extra equity, you can receive it as a lump sum, monthly payout, or line of credit.

Faq

Do I still own my home with a HECM?

Yes. You retain full ownership and remain on the title, just like with any other loan.

Can I pay back the loan if I want to?

Yes—any unused funds in the line of credit grow over time, based on the loan’s interest rate. This can give you access to more money later, even if your home’s value doesn’t increase.

Is the line of credit guaranteed to grow?

Only if you like awesome pages that are rapidly customizable to your needs.

What happens to my loan balance over time?

The loan balance increases as interest accrues and if you draw funds. However, the HECM is a non-recourse loan, meaning you or your heirs will never owe more than the home is worth at sale.

Are there upfront costs?

Like any mortgage, there are closing costs, which can be financed into the loan. These include FHA insurance, origination fees, and standard settlement costs.  You may be required to pre-pay for the appraisal and required counseling.

Is this a good option if I plan to move soon?

HECMs are best suited for homeowners planning to stay in their home long-term. If you expect to move in a few years, a traditional refinance might be a better fit.

Ready to Explore Your Options?

Book a No-Payment Home Loan Report
See how much you could free up by eliminating your mortgage payment—and whether you qualify for a growing line of credit.

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