Question

A borrower is a 65-year-old retiree with a fixed income and significant equity in his home. Which of the following would be the best option to supplement his cash flow? 1) SISA 2) ARM 3) HECM 4) HELOC

Answer 1

The best option for the retiree to supplement his cash flow would be a HECM (Home Equity Conversion Mortgage).

Step-by-step explanation:

The best option to supplement the borrower's cash flow would be a HECM (Home Equity Conversion Mortgage). A HECM is a type of reverse mortgage that allows the borrower to convert a portion of their home equity into cash without having to sell the property or make monthly loan payments. It is specifically designed for retirees with fixed income and significant home equity. By taking out a HECM, the borrower can receive regular cash flow payments from the lender, which can help supplement their retirement income.

Learn more about HECM