What Is A Reverse Mortgage (HECM)?
A reverse mortgage is a home loan that allows seniors to receive cash payments against the value of their home equity. It is called a reverse mortgage because instead of you making payments on the loan, you receive cash payments from the wealth you’ve amassed from your home’s equity.
What is a Reverse Mortgage Like?
A reverse mortgage is an excellent solution for seniors with moderate to high equity in their home who need some extra cash or financial relief without any credit requirements. The loans are available to homeowners, who are 62 years of age and older, and provide a number of benefits, including:
What is a reverse mortgage? It’s a financial option that may allow you to enjoy a more comfortable retirement while maintaining your independence.
Reverse Mortgage Options and Obligations
Reverse mortgages allow homeowners to access their equity in several ways. You can receive money as a lump sum, a line of credit, a monthly payment, or any combination of the three depending on the loan program that you choose. You retain the title to your home, and you are responsible for all property taxes, insurance costs, and home maintenance—all of which can be paid out of cash secured by the loan.
For homeowners’ protection, reverse mortgages are designed so you cannot owe more than your house is worth. The loan itself does not come due for as long as you live in the house as your primary residence and as long as you keep your property taxes and insurance up to date while keeping the home adequately maintained.
US Mortgage Corporation offers three different Reverse Mortgage (HECM) options:
A HECM for purchase loan, which is the newest of the 3, differs from other reverse mortgages. Instead of accessing existing equity, the HECM for Purchase loan gives Senior homebuyers an opportunity to purchase a home without making monthly mortgage payments.*
* – Homewoner is responsible for property taxes, insurance and maintenance
** – Please consult with a financial adviser
Want to learn more about a Reverse Mortgage (HECM)? Speak with a Licensed Loan Officer.
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