A Better Life is Within Reach
Discover the Home Equity Conversion Mortgage: the only loan developed specifically for seniors age 62+ that gives you the choice to permanently, monthly, or periodically OMIT your monthly mortgage payment.*
Here at A Better Life Mortgage, our goal is to EDUCATE you on this great financial tool so you can make an informed decision about your retirement years.
*Borrowers must continue to pay property taxes, homeowners insurance, and home maintenance costs.
Equal Housing Opportunity | NMLS 2124084
The Home Equity Conversion Mortgage (HECM) Explained
The HECM is a loan specifically designed for seniors aged 62 and older. Spouses are allowed to be under 62. The HECM gives seniors a variety of options depending on how much equity they have. The most common option is to simply omit the mortgage payment, but other options are: receive cash at closing, &/or receive a monthly payment, &/or set up a line of credit which can be accessed if other expenses arise. This loan is a Federal Housing Administration (FHA) loan.
Like any other mortgage, the HECM has an interest rate associated with the loan, but instead of the principal going down like on a normal mortgage, the principal goes UP because borrower is NOT paying the interest and anything towards the principal. No interest or payments are required as long as at least one borrower is living in the home for 6 months and 1 day and is paying the required fees, such as homeowners insurance, property taxes, and on-going maintenance costs. The home must be a principal residence. For more information, see ELIGIBILITY REQUIREMENTS.
Why Choose the HECM?
What People are Saying about the HECM
My reason for doing the HECM was to free up some cash for repairs/small projects around my home without dipping into my 401k-type retirement. I had been delaying due to not wanting to deduct from my retirement principal. It worked well for that purpose and I am happy with my decision. As to Kathy and her help, not enough can be said about her advice, help, knowledge, energy, and concern for her clients .She is the best one could hope for.
Rick C. | Retired Airline Pilot
I'd like to thank you for your help in understanding the ins and outs of this loan. This helps me toward my retirement years and keeps me in my home.