…There’s a lot you need to know about reverse mortgages. This Q&A will help clarify how this complex transaction works.
What is a reverse mortgage?
It’s a loan on your house that lets you tap your home’s equity. Like a cash advance, a bank fronts you the money—either as a lump sum, a line of credit or [...]
The Home Equity Conversion Mortgage (HECM) is FHA’s reverse mortgage program which enables you to withdraw some of the equity in your home. You choose how you want to withdraw your funds, whether in a fixed monthly amount or a line of credit or a combination of both.
Frequently Asked Questions About Reverse Mortgages
What is a reverse mortgage?
A reverse mortgage is a loan that enables senior homeowners, age 62 and older, to convert part of their home equity into tax-free* income—without having to sell their home, give up title to it, or make monthly mortgage payments. The loan becomes due when the last [...]
Reverse Mortgage Glossary
acceleration clause
the part of a contract that says when a loan may be declared due and payable
adjustable rate
an interest rate that changes, based on changes in a published market-rate index
appraisal
an estimate of much a house would sell for if it were sold; also called its market value
appreciation
an increase in a home’s value
Area Agency [...]
Learn About the Differences Between a Fixed Rate and an Adjustable Rate Reverse Mortgage
Fixed Rate Home Equity Conversion Mortgage
A fixed rate Home Equity Conversion Mortgage (HECM) provides you with comfort and security because it allows you to lock in an interest rate for the entire life of the loan. With this government insured HECM, you [...]
There are three different reverse mortgages available on the market today