What is a Home Equity Conversion Mortgage?

Home Equity Conversion Mortgage: Also Known As A Reverse Mortgage

What is a HECM and is it the same as a Reverse Mortgage?

A HECM (pronounced heck-um) is a Home Equity Conversion Mortgage, the fancy name for a Reverse Mortgage. It makes sense when you think about it because that's exactly what you're doing—converting your home equity into cash.

If you are a homeowner aged 62 or older, a reverse mortgage can be a helpful tool to help you stay in your home (or even buy a new one) but not worry about having a mortgage payment. You will still be responsible for paying taxes and insurance and for properly maintaining your home. You must use the home as your primary residence.

How does a HECM mortgage work? Take a look at the highlights below. 

Program Highlights:

  • No payment option available*
  • HECMs are federally insured.
  • Same products, limits, LTVs, and rates as traditional mortgages
  • Excellent planning tool to fund retirement

The Fine Print:

  • Must be 62 years old, or older
  • Applies only to owner-occupied, primary residences
  • Mandatory HUD counseling
  • The homeowner is still responsible for property taxes, homeowners insurance, upkeep and any relevant condo fees.
  • *Age-based assessment and other guidelines determine allowable equity ratios. Various payment and draw options available.

Want to see if you qualify for a Reverse Mortgage today?

I Want My FREE Reverse Mortgage Quote!

If you're interested in exploring the opportunities a HECM may provide you or a loved one, give us a call today. We'll be happy to help.  833-345-1234.

New Call-to-action

Reverse Mortgage Qualifier!
New call-to-action
New call-to-action