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.
Reverse mortgages can be a useful tool for seniors who need extra income. But for someone who doesn’t plan to live in her home for long, a reverse mortgage could be mistake. Here’s why according to a recent US News and World Report article about reverse mortgages.
The FHA released a final rule today making the new HECM counseling standards official. The rule goes into effect on October 2, 2009.
The U.S. Department of Housing and Urban Development announced a new set of principal limit factors for the Federal Housing Administration (FHA) HECM program. The changes will lower the principal limits for the HECM by 10%.
Recently the Reverse Mortgage market has added a new index to the available options. You now have a choice of the index for your loan.
The Home Ownership and Economic Recovery Act of 2008 made many considerable improvements to the Government regulated and insured Home Equity Conversion Mortgage or HECM reverse mortgage.
A reverse mortgage loan is a special type of mortgage loan for seniors (generally age 62 and older) that pays a homeowner loan proceeds drawn from accumulated home equity.
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 [...]