HECM Line of Credit
All the benefits of a traditional home equity loan, but with more flexible payment options.
If you're 62 or older, an FHA-insured* Home Equity Conversion Mortgage (HECM) can be a smart retirement financing solution. If you have an existing mortgage, home equity loan or other debt, you could refinance them with a HECM line of credit and greatly reduce your monthly bills, while getting enhanced benefits that aren't available with other loan options — including a flexible payment feature.
Compare a HECM Reverse Mortgage versus a traditional Home Equity Line of Credit (HELOC).
The advantages of a HECM Line of Credit are clear.
Line of Credit
|Converts home equity into funds you can easily access as needed.|
|Federal Housing Administration (FHA) insured loan*|
No required monthly payment on principal and interest.
|If part of your loan is held in a line of credit, the unused portion of the line of credit will grow in size each month.1|
|Lender cannot cancel or reduce your line of credit, as long as you meet your loan obligations.|
|You can never owe more than the home is worth when the loan is repaid — known as the non-recourse feature.|
|No pre-defined loan maturity date: Loan remains in force and no principal and interest payments are required until borrowers move, pass away or sell the home, as long as they meet their loan obligations.|
|You can choose to convert the line of credit into a monthly stream of funds at any time in the future.|
Call me today and see why HECMs are a loan for life.