Finance of America expands HomeSafe Second reverse mortgage

"Many retirees are facing mounting pressure from rising healthcare expenses and everyday living costs, while navigating unpredictable markets. For homeowners who have built substantial equity, their home can be a powerful financial tool. HomeSafe Second was created to reflect the realities facing today's homeowner, giving them a way to tap that value without adding new monthly payments or sacrificing the low mortgage rate they worked hard to secure."

"Similar to options under the federally insured Home Equity Conversion Mortgage (HECM) program, borrowers maintain ownership of the property and do not make monthly principal and interest payments on the proprietary HomeSafe Second loan as long as they continue to live in the home, maintain it, and pay taxes and insurance."

"Americans 62 and older now hold more than $14 trillion in home equity, according to data published by the National Reverse Mortgage Lenders Association (NRMLA). Finance of America said it's positioning HomeSafe Second as a tool for converting a portion of that equity into cash without triggering the need for a refinance."

Finance of America introduced HomeSafe Second, a proprietary loan product designed for homeowners aged 55 and older (62+ in some states) seeking lump-sum access to home equity through a second lien. Borrowers maintain property ownership and avoid monthly principal and interest payments as long as they remain in the home and maintain property taxes and insurance. The product addresses the needs of equity-rich, rate-locked homeowners reluctant to refinance in today's higher-rate environment. Home values have increased nearly 55% since 2020 while mortgage rates have doubled from pandemic lows. Simultaneously, healthcare and living costs in retirement continue rising, with Fidelity estimating a 65-year-old may need $165,000-$175,000 for healthcare alone. Americans 62+ hold over $14 trillion in home equity, making HomeSafe Second a tool to convert equity into cash without triggering refinancing.

Read at www.housingwire.com