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What is a reverse mortgage?

We had the opportunity this week to learn more about reverse mortgage or HECM (Home Equity Conversion Mortgage) loans with one of preferred partners, Movement Mortgage. Big thank you to Ed Butler and his team who took great care of our agents by serving lunch and teaching more about reverse mortgages for our customers.

Do you have a loved one that you’d like to move closer to you? Reach out to our team and let us help get you qualified and move your family to a more suitable residence during their retirement.

HECM Loan or Reverse Mortgage

A Home Equity Conversion Mortgage, or reverse mortgage, is a special loan that will help you access some of the equity that you have accumulated  over the years of paying on your home. The loan grows over time but you do not have to pay the loan back while you live in the home, sell your home or die, the loan must be paid off then.

Who is eligible? Individuals who are 62 years old and older who have owned and reside in their primary residence. The loan requires counseling from a HUD approved agency and the borrower must be up to date on their existing mortgage for at least 24 months. Another qualification of a reverse mortgage is that only single family homes or 2-4 unit homes qualify. The 2-4 unit home must have the borrower residing in 1 unit as a primary residence as well.

The benefits of a HECM:

  • Elderly loved one can move closer to their family or downsize to smaller, one story home.
  • Supplement retirement income.
  • No monthly principal and interest payments.

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Crystal – Terri and I enjoyed meeting you today. Your attention to the sale of our condo was fantastic. We wouldn’t think of doing business with anyone but the Cooley Group in the future. Thanks for all your help! Mike & Terri
Mike & Terri

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