Question:

What is the Home Equity Conversion Mortgage (HECM)?

Answer:

The Home Equity Conversion Mortgage (HECM) is FHA insured reverse mortgage for seniors. Seniors 62 and over can make use of reverse mortgages to tap equity rather than home equity loans. The difference is that with a reverse mortgage they do not need to make monthly payments; rather, they either get a big sum of money, or are offered different periodic payment options.

Am I eligible for a home equity conversion mortgage (HECM)?

You are eligible for a HECM if you are 62 or older; you own your home and have little or no remaining mortgage balance on the house, and you use this home the HECM is taken on as a primary residence.

Almost any type of property is eligible for a home equity conversion mortgage. Well, for a more expensive residence you may get better options with private reverse mortgage lenders.

Generally, the later in your retirement you take a HECM, the more your house costs and the lower interest you get, the more you could borrow with a reverse mortgage.

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