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.

  Advantage Our HECM
Line of Credit 		Traditional HELOC  
  Converts home equity into funds you can easily access as needed. check check  
  Federal Housing Administration (FHA) insured loan* check    
  No required monthly payment on principal and interest.
  • (You remain responsible for property taxes, homeowners insurance, and property maintenance in order for the loan to remain in good standing.)
  • Flexible payment feature: You can choose to pay down your loan at any time if you so choose, or defer repayment. This gives you freedom and flexibility in terms of how you manage your monthly expenses.
check    
  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 check    
  Lender cannot cancel or reduce your line of credit, as long as you meet your loan obligations. check    
  You can never owe more than the home is worth when the loan is repaid — known as the non-recourse feature. check    
  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. check    
  You can choose to convert the line of credit into a monthly stream of funds at any time in the future. check    

1 The growth rate is equal to the sum of the interest rate plus the annual mortgage insurance premium rate being charged on your loan.

Line of Credit

Contact me today to learn more about this powerful financial tool.

Mary Alice Cardenas
Reverse Mortgage Specialist, NMLS #468646
Call 415-233-1007 | mcardenas@reversefunding.com

Watch our video to learn more.

 

Find out how much you may qualify for.
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