Reverse Mortgages From FHA Are Called HECM’s

By R W Taylor

FHA’s reverse mortgage program is called a HECM, which stands for Home Equity Conversion Mortgage. It is a mortgage program which allows you to take out a portion of the equity in your home if a financial situation might call for that to be done. There are 3 ways equity may be withdrawn as part of a financial retirement plan. You can choose whether to take out a lump sum in cash, take a fixed monthly amount, or to simply establish a line of credit which may be drawn upon if needed.

Through an online search HECM counselors can be found who can provide you guidance with respect to the advantages, disadvantages and financial implications of obtaining a reverse mortgage. A counselor can also provide possible alternatives. A full discussion with such an HECM counselor should be one of the very first moves you should make if you become seriously interested in considering a reverse mortgage.

It is even possible to obtain a reverse mortgage to purchase a new primary residence. If you have the majority of the cash you need to purchase a home, but not all of it, and you don’t want to have to make payments on a standard mortgage, it is possible to take out a reverse mortgage to accomplish the purchase.

But, there are many disadvantages, as well as advantages, in a reverse mortgage or home equity conversion mortgage program, and absolutely all of these must be taken into consideration as part of a long term financial retirement plan. There are, of course, significant borrower requirements, and property requirements which must be met in order to obtain a reverse mortgage.

Want more information about Reverse Mortgages?

Find out how to get the best Reverse Mortgage rates.

http://www.prosandconsofreversemortgage.com is a free resource for anyone looking for a Reverse Mortgage or looking to learn more about mortgage loans in general.

Photo by chb1848

Related posts:

1. Reverse Mortgages – FHA HECM By John Mazzara The concept of a Reverse mortgage Any...
2. Purchase a Home With a Reverse Mortgage Joseph Cina and Phil Goss The Housing and Economic Recovery...
3. Reverse Mortgages to Buy a Home – With NO Money Down! By Mitchel Champagne Reverse Mortgages..CHANGES IN THIS PROGRAM ALLOWS SENIORS...
4. It’s Called a Reverse Mortgage Because it Gets Larger, Not Smaller, Over Time By R W Taylor When senior citizens consider borrowing on...
5. Reverse Mortgages Could Be a Bailout For Seniors By George Fisher The reverse mortgage is fundamentally a financial-planning...

Related posts brought to you by Yet Another Related Posts Plugin.