What is a HECM, Home Equity Conversion Mortgage?

A Home equity conversion mortgage is a program that rewards homeowners that are 62 and older. Seniors can qualify for a low interest rate based on their age and equity not their credit and income.
 
Home Equity Conversion Mortgages enables homeowners to use their equity for tax free income, refinance their current mortgage, take a lump sum or set aside the equity in a credit line that grows and does not incur any interest charges. Seniors will have the option to: Not make a payment for as long as they live in their home, make monthly payments to retain their current equity or pay off the loan as a forward mortgage.
 
A brief history of Home Equity Conversion Mortgage or Reverse Mortgage – In the 1989, Congress created HUD’s Reverse Mortgage program. Essentially the U.S. Government backs a loan that you do not have to pay back for as long as you live in your home. Unlike previous reverse mortgage programs, the federally insured program doesn’t allow equity sharing and has caps on the fees. The homeowner retains ownership, title, the ability to refinance, sell or leave the home to their heirs. The program also retains the ability to make monthly payments and keep their equity.