HOME EQUITY CONVERSION MORTGAGE (HECM)
What is a HECM?
Key Benefits of a HECM
Cash Flow
You can access cash from a portion of your home equity without incurring income tax* (generally, it won’t affect your Social Security and Basic Medicare benefits). You can use the funds how you want.
* This advertisement does not constitute tax advice. Please consult a tax advisor regarding your specific situation.
Repayment Feature
You have the option to repay as much or as little of the loan balance each month as you would like, or you can make no monthly mortgages payments at all. Of course, you must still maintain the home and pay homeowners insurance and property taxes, just like a traditional mortgage.
Feature
The FHA guarantees that if the balance on the loan exceeds the home value at the time the home is sold, neither you nor your heirs will be responsible for paying the deficit (the FHA will pay it). If there are excess proceeds from the sale of your home, you (or your heirs) would receive them.
HECM INformation
- A lump sum.
- Fixed monthly payments for the life of the loan, or a set period of time.
- A line of credit.
- Or a combination line of credit and monthly installments.
The borrower(s) must:
- Be 62 years or older
- Live in the home as his or her primary residence and either own the home outright or have significant equity in the home
- Meet minimum credit and property requirements
- Must receive reverse mortgage counseling from a HUD-approved counseling agency
- Must not be delinquent on any federal debts
- Single family residence.
- 2- to 4-unit properties.
- Manufactured homes.
- Modular homes.
- Planned unit developments.
- Townhomes.
- FHA-approved condominium.
Common Uses of a HECM Mortgage
Click the button below to start your free consultation or to request free reading material!
Refinancing your current mortgage into a reverse mortgage eliminates your obligation to make required monthly mortgage payments. You must maintain the home and pay your homeowners insurance and property taxes.
A reverse mortgage allows you to access your equity as a lump sum, monthly payments, a line of credit, or a combination. Use that to help fund the FUN in retirement.
If you choose the line of credit option you have a safety net for peace of mind. Also, the unused portion of the line of credit can grow!
Use the funds from your reverse mortgage to take the trip you have always wanted to.Use it to finally remodel the one part of your home you always wanted to. The possibilities are endless.
You can use the funds from a HECM to pay off high interest debt, or consolidate your debt into one place. Then your other monthly income sources can go further and life can become more enjoyable.
Reverse Mortgage Calculator
Note: The free reverse mortgage calculator on this web page is specific to HECM (Home-Equity-Conversion-Mortgage) reverse mortgages.
THE FIGURE AND GRAPHS IN THE REVERSE MORTGAGE CALCULATOR ABOVE ARE INTENDED AS AN ESTIMATE ONLY, BASED ON THE HOME VALUE, MORTGAGE BALANCE, AND BORROWER AGE YOU HAVE PROVIDED. YOUR ACTUAL LOAN AMOUNT MAY DIFFER BASED ON MARKET CONDITIONS AND APPLICABLE FEES IN YOUR AREA
For this example, EXPECTED RATE has been set at 6.5% . Rates are subject to changing market conditions. The “Total Proceeds” amount you may be eligible for is the sum of your “Mortgage Payoff” and “Available Proceeds” and does NOT INCLUDE CLOSING COSTS, FEES, or MORTGAGE INSURANCE PREMIUMS (MIP).
This is not a commitment to lend nor a loan approval. All borrowers must meet loan obligations, including paying all property charges (property taxes, fees, and homeowners insurance) as well as living in the property as the primary residence. The borrower must also properly maintain the home. If the borrower does not meet these loan obligations the loan may become due and payable.
You probably
have questions...
Here are just a few questions we get, you can view more FAQ’s by clicking below.
Over the phone we can ask you a few questions and get some basic financial information and give you the information necessary in order to see how a reverse mortgage could improve your situation.
You can fill out the form to the right and we can send you some reading material you can review.
