How would the Smiths financial options change if they replace their traditional mortgage and HELOC with a HECM while continuing to make the same payment on the HECM?
- Home value: $500,000
- Payoff 1st Mortgage: $125,000
- 10 more years @ 4.125%
- Payment = $1,273.00
- HELOC balance – $55,000 used of $75,000
- 10 more years @7%
- Payment = $638.60
- Youngest borrower: 62
- Monthly Total = $1,911.60
