It’s a well-known fact that for many older Americans, the home is their single biggest asset, often accounting for more than 45% of their total net worth. And with interest rates still near all-time lows while home values remain high, this combination creates the perfect dynamic for getting the most out of your built-up equity.

But, many aren’t taking advantage of this unprecedented period. According to new statistics from the mortgage industry, senior homeowners in the U.S. are now sitting on more than 9.23 trillion dollars* of unused home equity.

Home Values at All Time Highs

Not only are people living longer than ever before, but there is also greater uncertainty in the economy. With home prices back up again, ignoring this “hidden wealth” may prove to be shortsighted when looking for the best long-term outcome.

All things considered, it’s not surprising that more than a million homeowners have already used a government-insured Home Equity Conversion Mortgage (HECM) loan to turn their home equity into extra cash for retirement.

It’s a fact: no monthly mortgage payments are required with a government-insured HECM loan; however, the borrowers are still responsible for paying for the maintenance of their home, property taxes, homeowner’s insurance and, if required, their HOA fees.

Today, HECM loans are simply an effective way for homeowners 62 and older to get the extra cash they need to enjoy retirement.

Although today’s HECM loans have been improved to provide even greater financial protection for homeowners, there are still many misconceptions.

Available if You Still Owe on Your Home or Owe Nothing

For example, a lot of people mistakenly believe the home must be paid off in full in order to qualify for a HECM loan, which is not the case. In fact, one key advantage of a HECM is that the proceeds will first be used to pay off any existing liens on the property, which frees up cash flow, a huge blessing for seniors living on a fixed income. Unfortunately, many senior homeowners who might be better off with a HECM loan don’t even bother to get more information because of rumors they’ve heard.

In fact, a recent survey by American Advisors Group (AAG), the nation’s number one HECM lender, found that over 98% of their clients are satisfied with their loans. While these special loans are not for everyone, they can be a real lifesaver for senior homeowners — especially in times like these.

Use the Extra Cash for Almost Anything

The cash from a HECM loan can be used for almost any purpose. Other common uses include making home improvements, paying off medical bills or helping other family members. Some people simply need the extra cash for everyday expenses while others are now using it as a safety net for financial emergencies.

If you’re a homeowner age 62 or older, you owe it to yourself to learn more so that you can make the best decision for your financial future. We’re here and ready to help. Homeowners who are interested in learning more can request a FREE, no obligation Reverse Mortgage Guide by calling toll-free at 800-919-5730