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What is a HECM Reverse Mortgage?
Home Equity Conversion Mortgages (HECMs) are also known as Reverse Mortgages. Reverse Mortgages are designed to help Americans age 62 and older to convert a portion of their home equity into tax-free money. These loans are insured by the Federal Housing Administration (FHA) and helps Seniors to live comfortably and achieve retirement security.
How does the process work?
A reverse mortgage loan allows you to turn a portion of your home equity into cash to improve your lifestyle by your own means. You get to continue to live in your home, retain its ownership and are not required to make any mortgage payments during the loan period. Instead of paying the loan monthly, the loan balance is repaid when all borrowers have left the home. The amount of tax-free money you receive is based on current interest rates, the age of the youngest borrower and your home appraised value.
5 Advantages of HECM Reverse Mortgages:1. No monthly mortgage payments(s)2. Tax-FREE proceeds3. Retain your home and ownership4. FHA insured by the GOV5. Delay your Social Security benefits