Hecm

A Home Equity Conversion Mortgage (HECM) is also known as a reverse mortgage. Reverse mortgages are like home equity loans with one major difference. Like a home equity loan, you borrow against the value of your home. And like a home equity loan, you can get the cash from a reverse mortgage in a lump sum or in dribs and drabs as you need it. With a reverse mortgage, you pay back nothing on the loan until you move out of your home or sell it. The proceeds are used to pay off the amount you've borrowed, and the amount you owe is limited to the value of your home. Learn more here about reverse mortgages or a HECM.

Featured Hecm Article

How Does A Reverse Mortgage Work And What Are The Pitfalls?

How does a reverse mortgage work? A homeowner can take out a loan based on the equity in their home, and the loan becomes due when the home is sold. Usually FHA’s home equity conversion mortgage (HECM) program is loaded with insurance to prevent any loss in case the value of the home drops. However, pitfalls with reverse mortgages can range from life expectancy issues to home value calculations. And any of these pitfalls can cause problems down the line with reverse mortgages.

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