The HECM is by far the most common type of reverse mortgage in today’s mortgage lending marketplace. If somebody you know got a reverse mortgage in the past few years, it’s a good bet it was a HECM reverse mortgage.
The acronym HECM stands for Home Equity Conversion Mortgage, which is the official reverse mortgage product created by Congress in 1987 and regulated and insured by the Federal Housing Administration (FHA) under the authority of the Department of Housing and Urban Development (HUD).
Today, over 50,000 HECM reverse mortgages are taken out by seniors each year in America – and the number is growing.
No Mortgage Payments For Life
The most phenomenal feature of the HECM, and the thing that sets it apart from other mortgage products, is that no mortgage payments are required for as long as you live in the home. If you’re not planning on moving, that means you’ll never make another mortgage payment for the rest of your life. What other mortgage product offers that?
The HECM allows you to convert home equity into cash that you can use to eliminate mortgage payments, pay off other debt, supplement your retirement income – or, just have fun doing the things you love!
Here are some of the great highlights of the HECM reverse mortgage:
- No monthly payments required for as long as you live in the home.
- You keep title to your property and are free to will it to your heirs.
- The loan does not need to be repaid until you permanently leave the home.
- At repayment time, you can never owe more than your home is worth.
- The HECM is insured and regulated by FHA.
- Proceeds are not subject to income taxes and don’t impact Social Security and Medicare benefits.
Find Out More
Ready to find out more about the HECM reverse mortgage? Check out the links below.