If you’re 62 or older and need financial assistance to supplement your income, or pay for healthcare, a reverse mortgage might be the right solution. It allows you to convert part of your home’s equity into cash without having to sell your home or pay additional monthly bills. However, it can be not very easy if you can’t understand the …
A reverse mortgage allows borrowers to pull the equity out of their home as a secure post-retirement plan. Meant for seniors at or above the age of 62, it is a solution that can help through retirement. It is important to clearly understand how does a reverse mortgage work and what are the key reverse mortgage benefits and drawbacks before …
If you are looking for the best post-retirement financial planning, you might also be wondering about what is a reverse mortgage. To put it in simple terms, a reverse mortgage is a loan. However, unlike regular loans, this allows homeowners to convert a portion of their home equity into cash, given that the homeowners are 62 years old or more. …
First thing first, 98% of all reverse mortgages today are the Federally Insured Home Equity Conversion Mortgage or HECM. This is HUD and FHA’s new name for the reverse mortgage. So it’s important to realize that when commercials and marketing material advertise reverse mortgages, they’re talking about the Federally Insured reverse mortgage or HECM. A HECM reverse mortgage can be …
How Do HECM Loans Work? A Guide for Senior Homeowners HECM, also known as Home Equity Mortgage Loans, is a form of reverse mortgage that has gained immense popularity among seniors in the USA. Considered as one of the most popular retirement income among homeowners aged 62 and above, the government insures this scheme through the Federal Housing Administration (FHA). …
HECM stands for Home Equity Conversion Mortgage, which allows senior citizens to extract useful income out of their home equity. In HECM mortgage, the mortgagor’s home becomes collateral, and the loan is repayable only when the borrower stops living in the mortgaged property either because they are dead or has moved elsewhere. To summarize what is a HECM loan, you …
