A Home Equity Conversion Mortgage (HECM), commonly known as a reverse mortgage, is a Federal Housing Administration (FHA) insured loan which enables you to access a portion of your home's equity to obtain tax-free funds without having to make monthly mortgage payments.
If you are 62 years of age or older and have sufficient home equity, you may be able to get the cash you need to:
The HECM is available as either an adjustable or fixed rate loan. With the adjustable, the rate is adjusted either monthly or annually based on the corresponding LIBOR (London Interbank Offered Rate) index. The fixed rate HECM maintains the same interest rate over the life of the loan, but may reduce the amount of available proceeds depending on your situation.
HECM for Purchase
The HECM for Purchase program can help homeowners buy their next home without having to make monthly mortgage payments.
Federal Housing Administration (FHA) Insured
HECM loans are FHA insured. You are protected against lender insolvency and can expect to receive your proceeds.
Capped Interest Rates
If your loan has an adjustable interest rate, there is a limit on how much the interest can change during over the life of the loan. Most adjustable rate loans are capped at 5% from the start rate.
Neither you nor your heirs are personally responsible for repayment of the loan.
For a free, no obligation proposal, please call me at (505)690-1029.