THE HOME EQUITY CONVERSION MORTGAGE
Reverse Mortgages vary for different situations. Most common is the Home Equity Conversion Mortgage (HECM), which is insured by the federal government. Following recent legislation, there are new increased borrowing limits available along with the ability to purchase a new home with this program.
- Eliminate your existing mortgage payments
- Available for individuals 62 years old and older
- No monthly payments are required (Borrowers must continue to pay taxes, insurance and maintain the home in good condition)
- Delivers tax free monthly income (consult your Tax Advisor)
- Allows homeowner to live in their home
- Title to the home remains in the homeowners name
- The customer can now also use a Reverse Mortgage to purchase their new home.
How Can You Benefit From a Reverse Mortgage?
Reverse mortgages are special home loans designed with seniors in mind. If you have considerable equity in your home, you may be able to convert that asset into income. Payments are made to you, and as long as you live in the home, the loan never has to be repaid. Reverse mortgage can provide you with cash today — with no requirement to ever pay it back for as long as you live in your home.
The disbursement options on a reverse mortgage loan are flexible. You can access money by:
- Taking a lump sum
- Establishing a line of credit to use as needed
- Arranging a combination of the above options
Payment options can adjust to fit you flexible needs.
When and if the home is left permanently, the balance on your reverse mortgage becomes due. Selling the home itself can pay for this—any remaining equity belongs to you or your heirs.