A Reverse Mortgage or Home Equity Conversion Mortgage (HECM), is a Federal Housing Administration (FHA) insured loan that enables you to access a portion of your home’s equity without having to make monthly mortgage payments.
HECM loans are utilized by many seniors needing to increase their monthly cash flow or establish a line of credit as a safety net for unplanned events during retirement.
If you are 62 years of age or older and have sufficient home equity, you may be able to get the cash you need to:
A reverse mortgage allows you to maintain ownership of your home (retain title) and live in your home as long as you need. You will not be taxed on the loan proceeds until you sell the property. Although you must continue to pay required property tax and insurance, as well as keep regular home maintenance to FHA standards.
By securing your reverse mortgage with a reputable mortgage company you alleviate any worry that your heirs will be impacted negatively. Your heirs should never owe more than the balance of the loan or the value of the property, whichever is less; and no assets other than the home are required to be used to pay the debt. The loan is repaid with the proceeds of the sale of your home when the time comes to sell, whether you are moving, or have passed away.
When considering a reverse mortgage or HECM loan there are many questions you must ask yourself to help determine if it might be the right decision for you.
A reverse mortgage may be just what you’re looking for if you have equity in your home and want to:
Learn more about Reverse Mortgages in the Ultimate Guide to Reverse Mortgages.
Contact one of our Mortgage Advisors at 800.816.5626 or through our website to answer any of your questions.