When doing some research about reverse mortgages, you may have come across a term, HECM. What does this term mean and how is it involved with the reverse mortgage?
The term HECM, pronounced “heck-um”, means Home Equity Conversion Mortgage. The major difference between the HECM program and a reverse mortgage is the HECM program is insured by the Federal Housing Administration (FHA). One Reverse Mortgage offers the HECM program which means that the reverse mortgages we offer are insured by the FHA. Reverse mortgages insured by the FHA are more secure than the reverse mortgage not insured by the FHA.
The reverse mortgage program has helped thousands of seniors stay in the home they love and live a better life. The reverse mortgage is for anyone looking to do more in life, whether you are retired or still working. The reverse mortgage is truly for anyone. It can give you peace of mind for your retirement not just today but also into the future.
If you have a mortgage on your home you can eliminate that monthly mortgage payment with a reverse mortgage. No longer having to make a monthly mortgage payment* can free up some money for things you normally could not afford. It can improve the quality of your life.
Even if you own your home free and clear, a reverse mortgage can benefit you. If you own your home outright you will be able to access a larger amount of cash then someone who has a mortgage. Here’s what will happen if you own your home free and clear. Qualify for a reverse mortgage. Remember you must be at least 62 years old or older, a home owner and have sufficient equity in your home; the equity part won’t be a problem since you own your home free and clear**. You will receive your proceeds in tax-free*** cash which you can use for anything you want.
The reverse mortgage program is becoming a financial planning tool for senior homeowners looking to supplement their Social Security, help investments last longer and even help grandkids with college expenses. One of the best benefits of a reverse mortgage is that the money you receive can be used for anything.
If you are interested in the reverse mortgage program be sure to work with a company that offers a HECM reverse mortgage. Remember a HECM reverse mortgage is insured by the FHA, making the loan more secure than a reverse mortgage that is not.
If you want to learn more give us a call. We can answer your questions. We can even give you a reverse mortgage review with no obligations.
*Homeowner is still responsible for taxes, insurance and property maintenance.
**You remain responsible for counseling costs, taxes, insurance and maintenance expenses.
***Please consult with your financial advisor.