The Basics: HECM Reverse Mortgage Eligibility Requirements

The HECM reverse mortgage is an FHA-insured mortgage program designed to give seniors access to a large portion of the value of their home without having to take on a mortgage payment or give up ownership of the home. The reverse mortgage is a home loan, so it does come with some basic eligibility requirements: You must be 62 or older. For married couples, only one individual needs to be at least 62 years of age … Read More…

How Does the Variable-Rate HECM Work?

The variable-rate HECM is the most popular product in today’s reverse mortgage marketplace. It’s more flexible and customizable than it’s fixed-rate counterpart and will often offer more cash as well. It comes with a variable interest rate that can move around over time, but only within certain limits. If the idea of a variable rate makes you nervous, keep in mind that the reverse mortgage never requires a monthly payment. Even if your interest … Read More…

How Does the Fixed-Rate HECM Work?

There are two main FHA-insured reverse mortgage products, the fixed-rate HECM and the variable-rate HECM. The fixed-rate HECM is generally the less popular of the two because it isn’t as flexible and customizable as the variable-rate HECM, but it is still a great reverse mortgage option for many people. It comes with the security and predictability of an interest rate that never changes, but the rate is usually higher than the start rate of a comparable variable-rate HECM. How It Works … Read More…

How One Couple (Unfortunately) Got Burned By a Reverse Mortgage

Reverse mortgages do a lot of good for a lot of people every day, but unfortunately you never hear about that in the media. What you do hear about are the rare horror stories where something goes wrong and somebody gets burned by a reverse mortgage, either because they abused or the lender misled them about the program (or both). An Unfortunate Situation Check out the following excerpt from an article … Read More…