MAKING LIFE EASY
HECM
Home Equity Conversion Mortgage
EVER HEARD OF HECM?
A Home Equity Conversion Mortgage (HECM), also referred to as a Reverse Mortgage, is a type of home equity loan that allows you to convert a portion of your home’s value into Tax-Free cash while you retain homeownership. Reverse mortgages work much like traditional mortgages, only in reverse. Rather than making a payment to your lender each month, the lender pays you.
FOR THE FAMILY
There are many things that both your parents and your family should understand before deciding if a Home Equity Conversion Mortgage (HECM) is the best decision for everyone.
Sometimes the word “HECM” or “Reverse Mortgage” can be scary to people. Therefore, it is our goal to educate, inform, and answer any and all questions you may have. By doing so, we’ll make sure that your parents not only understand what will happen in the event that they pass away unexpectedly, but they’ll be able to see what their options are, what a HECM would look like in their lives specifically, and are agreeable with the loan terms provided, all before making a decision!
An educated discussion in terms of how HECM might benefit your parents is an important part of the process.
If you find yourself with additional questions regarding what your family should know about the HECM product, please contact us by submitting the form below, and we will be sure to send you more information on PRMG’s HECM product.
WHAT HAPPENS WHEN MY PARENTS PASS?
Reverse mortgages become due once both borrower(s) are no longer living in the home. If your parents leave their house to you as an inheritance, you’ll have multiple options available to you in terms of how the loan will be paid back, and choosing an option that is in line with your plans for the house at that time.
In most cases, a borrower’s estate allows the home to be sold in order to repay the lender. In some cases, the family chooses to pay off the loan in order to prevent selling the house. What’s important to know is that you have the flexibility and time to make a decision as you see fit!
HOW MUCH MONEY CAN MY PARENTS EXPECT TO RECEIVE?
The amount of equity available with a HKM is based on the age of the youngest borrower, the interest rate, lending limit and the property’s value. How much of that equity that is available as cash to your parents will depend on their unique situation, Contact a PRMG HECM specialist today to go over your parent’s unique situation and get important information to help your family make an educated decision on if a HECM is right for you.
THE OPTIONS
Unlike conventional home equity loans, most reverse mortgages do not require any repayment of principal, interest, or servicing fees for as long as you live in your home and keep your Property Taxes and Homeowners Insurance current. If you are age 62 or older and are “house rich, cash-poor”, a reverse mortgage may be an option to help increase your income. At PRMG, we offer the following HECM options:
HECM PURCHASE
- Must Be 62 Years of Age or Older
- Purchase a New Home by Combining a Reverse Mortgage with a Down Payment
- Eligible for Owner Occupied Only
- ARM and Fixed Rates Available
HECM TO HECM REFINANCE
- Must Be 62 Years of Age or Older
- Retain All Benefits of Previous Reverse Mortgage
- Access Additional Equity Gained through Appreciation to Consolidate Debts, Establish a Line of Credit, or Pull Out Cash
- ARM and Fixed Rates Available
HECM REFINANCE
- Must Be 62 Years of Age or Older
- Reduce Current Monthly Loan Payments
- Access Additional Equity Gained through Appreciation to Consolidate Debts, Establish a Line of Credit, or Pull Out Cash
- ARM and Fixed Rates Available
*Note: Some Restrictions May Apply
MORE RESOURCES
HECMIZE Your Business Plan
Picture a mid-1970’s version of Southern California, an excited young couple stepped together into a new threshold, gleaning with pride as their homeownership dream had materialized. This new anchorage presented for their impending family a launch to an eventful future with endless possibilities and priceless memories.
Who Told You That?! Breaking Down the Reverse Mortgage Facts
For some within the 62+ years-old club, Reverse Mortgage isn’t even up for discussion. Granted, its dark cloud reputation was at one point well deserved. But that hasn’t been true for some years now. The FHA-backed loan program has undergone significant changes allowing seniors financial security with very low risk and because of the loan program’s rewrites, HECM borrowing seniors are far safer than ever before…
Retiring Smarter with HECM
Let’s imagine the overwhelming pinning down today’s older Americans. Side-swiped by the unforeseeable, seniors have been grossly affected by never ending Covid outbreaks, increased costs of living (due in part to the highest inflation in recent history), increased work demands and even forced surrenderings to retirement. This culmination has our elderly pathway positioned for a financial avalanche!
Let’s Get Started!