Reverse mortgages are increasing in popularity with seniors who have equity in their homes and want to supplement their income. The only reverse mortgage insured by the U.S. Federal Government is called a home equity conversion mortgage (hecm), and is only available through an FHA-approved lender..
If you own your own home and are 62 years of age or older, you may have a powerful financial ally: The equity in your home. A reverse or home equity conversion mortgage (HECM) can provide a considerable amount of flexibility to your budget, can eliminate your existing mortgage, and best of all, requires no monthly mortgage payments.
A reverse mortgage, also known as a home equity conversion mortgage (HECM), is a home equity loan that allows homeowners 62 and older to convert part of their home equity. Alternatively, some older homeowners opt to use a reverse mortgage line of credit or HECM line of credit.
NRMLA Calculator Disclosure. Please note: This reversemortgage.org calculator is provided for illustrative purposes only. It is intended to give users a general idea of approximate costs, fees and available loan proceeds under the fha home equity conversion Mortgage (HECM) program.
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Seniors often face many decisions when it comes to retirement. For example, will they be able to remain in their current home and age in place comfortably, or does it make more sense to downsize and free up their equity. Fortunately, a Home Equity Conversion Mortgage (HECM), also known as a reverse mortgage, could be [.]
HECM stands for Home Equity Conversion Mortgage, and it’s pronounced "heck-em." This reverse mortgage is government-backed and supervised by the Federal Housing Administration (FHA).
Don: The common term for home equity conversion mortgage is a reverse mortgage. So the legal name in 1988 is the home equity conversion mortgage-or HECM. The common name has been a "reverse mortgage." Now, we’re moving back to the HECM-home equity conversion mortgage-terminology because it’s really dynamic.
When a reverse mortgage might work better. If you’re on the fence about a reverse mortgage and can’t seem to decide whether to opt for a home equity loan instead, there are plenty of factors to keep in mind.
Long-term income vs. short-term cash The general rule of thumb is that a reverse mortgage works better for someone who needs a long-term, steady source of income, while a home equity loan is.