A reverse mortgage is also known as HECM (Home Equity Conversion Mortgage), which is a financial tool that was created specifically for homeowners aged 62 or older. A reverse mortgage allows you to convert a portion of the equity in your home into cash. Unlike a traditional home equity loan or second mortgage, HECM borrowers do not have to repay the HECM loan until the borrowers no longer use the home as their principal residence, or until they fail to meet the obligations of the mortgage.
Here is how you know if this is the right option for you:
You want to withdraw cash from your home equity.
You want to have more financial freedom and flexibility.
You want to have cash available for personal use.
These materials are not from HUD or FHA and were not approved by HUD or a government agency.