Contributed by Patricia Whitlock, Certified Reverse Mortgage Professional
The Home Equity Conversion Mortgage, or “HECM” (heck –um) as it is also known, has been around in close to its current form since the 1980’s.
It is hailed by mortgage professionals and borrowers alike as a safe way to access home equity without selling your home.
One of the HECM’s biggest advantages is that a borrower is not required to make payments as long as they live in the home.
The amount of money you can borrow is based on your age and the value of your home.
There are a couple of big changes that the reverse mortgage industry has introduced in recent weeks: the former “Standard” and “Saver” loans have been consolidated into one type of loan. The biggest change is the amount of money available – it’s less, but the costs are lower as well.
Not many people are aware that a reverse mortgage can be used to buy a house. You can apply the funds available (again based on your age and the value of your new home) towards the purchase of a primary residence in one transaction.
There will be a mortgage on the house, but one which does not require payments. Homeowner responsibilities remain: homeowner’s insurance and property taxes must still be paid, and the house should be maintained in a reasonable condition.
Imagine downsizing, possibly into a senior community, with a beautiful home more suited to your needs and no mortgage payments. Contact a qualified reverse mortgage specialist to find out how it might help you.
About the author: Patricia has been assisting seniors 62 and older in obtaining the reverse mortgage that best suits their needs for nearly a decade.
She is in demand as a speaker, presenting educational seminars and Continuing Legal Education courses for attorneys. Patricia comes from an education background, she is a Navy veteran, and holds the prestigious CRMP (Certified Reverse Mortgage Professional) certification.