Reverse Mortgage HECM

A Reverse Mortgage Home Equity Conversion Mortgage (HECM) is a government-insured loan designed for homeowners aged 62 or older, allowing them to convert a portion of their home equity into cash without having to sell the property or make monthly mortgage payments. The loan is repaid when the borrower moves out of the home, sells the property, or passes away. The amount that can be borrowed is based on the home’s value, the borrower’s age, and current interest rates. A HECM is a popular option for seniors looking to supplement their retirement income, cover medical expenses, or pay for home improvements. Unlike traditional mortgages, borrowers do not make monthly payments; instead, the loan balance grows over time. However, it is important to note that the borrower must maintain the home and pay property taxes and insurance. If these obligations are not met, the loan could be called due.