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.
Falling Home Values Don’t Affect Reverse Mortgages
Reverse mortgages pay the home owner and have not been affected by falling home values. Getting a reverse mortgage helps you tap your home's equity, or the amount of the home you own outright. Because few people obtain reverse mortgages and reverse mortgages do not cover full home values, reverse mortgages have not been hurt by the credit crisis.
Reverse Mortgage Information
Our first call today was from Howard. He's 75 and his wife is 65. Their house (he said) is worth about $170,000. He has a $20,000 mortgage and they ar...
Reverse Mortgage Helps Seniors Pay Bills
Should seniors pay heating bill and their mortgage using a credit card? Ilyce suggests they either sell their home or get a reverse mortgage to stop paying the heating bill with the credit card. The reverse mortgage would allow seniors to stop charging their home heating bill on the credit card.
Unfinished Business From Last Week’s Show
I've received several emails reminding me that I said I was going to talk about the new equity-sharing mortgage that's been unveiled in 9 states. Unfo...
Understanding Reverse Mortgages
In general, a reverse mortgage is something you consider if you have no other alternative and want to stay in your property. Reverse mortgages tend to be expensive, relatively inflexible, and they will eat up most of the equity in your property. Much research is needed before deciding to get a reverse mortgage.
Reverse Mortgage Or HECM May Be Good For Elderly
Older Americans who own their homes outright may benefit from a reverse mortgage or HECM, where they'll receive monthly payments from the equity in their homes. Reverse mortgage or HECM lenders can advise on how much a reverse mortgage will cost in fees and the issues inheritance issues involved.
Reverse Mortgages Versus Conventional Loans
Reverse mortgages differ from a regular mortgage in that instead of making monthly payments to the lender - the lender makes payments to you.
Reverse Mortgage Can Provide Retirement Money
A reverse mortgage can allow you to tap the equity in your home without having to sell it or take on another loan. Reverse mortgages or HECMs are commonly used by older Americans in retirement. A reverse mortgage can supplement other retirement income from investments and Social Security.
Reverse Mortgage Loan Provides Extra Income
A reverse mortgage may be a way to obtain some extra income, especially if you're elderly or retired. A reverse mortgage lets you get the equity out of your home without having to sell it or take on another loan such as a home equity loan. Learn who might be a good candidate for a reverse mortgage, or HECM.
What Are Reverse Mortgages?
What are reverse mortgages? How do reverse mortgages work? A reverse mortgage is a mirror image of a regular mortgage.