MAKING LIFE EASY
HECM
Home Equity Conversion Mortgage
EVER HEARD OF REVERSE MORTGAGES?
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.
How Can A Reverse Mortgage Work For You?
Pay-Off Your Existing Mortgage
A reverse mortgage allows you to eliminate your current monthly mortgage payment so long as you reside in the home as your primary residence and maintain the home’s taxes, insurance(s), HOA fees (if applicable) and upkeep.
Secure a Growing Line of Credit
Use a HECM line of credit to supplement income shortfalls or hedge against an uncertain economic future. You have the option to draw or not draw, worry-free! Cash can be drawn without fear of triggering traditional monthly payments. Any unused principal over time, providing you greater access to your home’s equity.
Purchase a New Home with HECM
Relocate or right-size into a new home that’s suited to meet your current and future needs. You can sell your existing home while buying a new one using reverse for purchase – with NO MONTHLY MORTGAGE PAYMENTS REQUIRED!*
Complete Home Upgrades and Modifications
Improve your quality of life and complete those long-awaited home projects. You can choose to remodel your home or modify your home to better suit your lifestyle and needs.
Know the Value of Your Property
Know where you stand. With your up-to-date property evaluation in hand, you’ll be better equipped to choose the loan terms that fit your goals.
Get Approved for a Cash-Out Refinance
Take advantage of your home’s equity with a cash-out refinance — and put your home loan to work for you.
HECM 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.
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.
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!
A VARIETY OF REVERSE MORTGAGE 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. Check out all your Reverse Mortgage options below!
STANDARD REVERSE MORTGAGE LOANS
Gain Access to Your Home’s Equity
Pay off your existing mortgage or refinance your existing reverse mortgage. Discover which Reverse Mortgage Loan Program would work best for you!
HOME EQUITY CONVERSION MORTGAGE (HECM)
Most Common Reverse Mortgage Program
Insured by the Federal Housing Administration, Homeowners aged 62 years or older can access their long-earned equity. Discover which HECM loan program option would work best for you.
JUMBO REVERSE MORTGAGE LOAN PROGRAM
The Best Option for a High-Value Home
Own a property with an above average value? Need more equity access than with a traditional HECM? Discover if a jumbo reverse mortgage is right for you.
ADDITIONAL RESOURCES
