What Is a HECM? A Home Equity Conversion Mortgage (HECM) is a reverse mortgage designed to help homeowners aged 62 and older access their home equity while continuing to live in their homes. It’s a flexible solution to enhance your retirement income, fund home renovations, or cover unexpecte...
For homeowners age 62 and older*, the federally backed Home Equity Conversion Mortgage (HECM) is the most common reverse mortgage product. Over the last 15 years, the HECM has undergone significant changes, becoming a popular tool for retirees...
Mortgage insurance premiums (MIPs)– There is a 2 percent initial MIP due at closing, as well as an annual MIP equal to 0.5 percent of the outstanding loan balance. The MIP can be financed into the loan. Origination fee– To process your HECM loan, lenders charge the greater of $2,500...
Reverse mortgages are designed for older homeowners who own their homes and need a source of money. The most common type of reverse mortgage is the Federal Housing Administration’s (FHA) Home Equity Conversion Mortgage (HECM), which is for homeowners 62 and over. You must have at least 50%...
Areverse mortgage, also called aHome Equity Conversion Mortgage(HECM), is a type of loan that works in the opposite direction to other mortgages – instead of the homeowner paying monthly installments to the lender, the lender pays monthly installments to the homeowner, or opens up a credit lin...
What is a reverse mortgage? A reverse mortgage allows homeowners to turn their home equity into cash, similar to ahome equity loan or HELOC. But rather than making monthly payments, the principal and any interest is due in full when the borrower (or an eligible spouse) sells the property, ...
Home Equity Conversion Mortgage (HECM) A home equity conversion mortgage is the FHA’s reverse mortgage, and it allows seniors to withdraw equity from the home into a fixed monthly payout or a line of credit. You can also use this program to purchase a new primary residenc...
A reverse mortgage is a powerful tool that enables homeowners to tap into a portion of their home equity and convert it to cash so they can live better in retirement. Also known as a home equity conversion mortgage (HECM), this federally insured program is designed to help retirees access ...
Most people get the most money from theHome Equity Conversion Mortgage (HECM), a federally insured program. 4 What do you think so far? Important considerations Now don't get it twisted—a reverse mortgage is not free money. It's still a loan that must be repaid eventually. Your debt in...
A HECM is the reverse mortgage program from the U.S. Department of Housing and Urban Development (HUD). HUD doesn't make mortgages; rather, it sets the standards for mortgages made by lenders. This standardization makes these loans eligible for backing by the Federal Housing Administration (FHA...