Torron Group Blog

Wednesday, August 13, 2014

HECM

What is HECM? Who is eligible for it? Why would I want to consider it?

HECM stands for Home Equity Conversion Mortgage. You must be at least 62 years old to qualify for the HECM program. And you must be a homeowner with a substantial amount of equity in your home.

Under HECM, you borrow money against the value of your home. This money can be used to cover living expenses, pay for healthcare costs, eliminate debt, purchase a new home, etc. Instead of making monthly payments to the bank, the bank makes payments to you.

Interest accrues on the money that is borrowed, but you do not have to make any payments on the loan until the home is sold or you pass away. At that point, the mortgage is due in its entirety.  However, because the home secures the mortgage, the amount due can never exceed the value of the home.

Many seniors are using this program to finance a new home that better meets their current needs. This allows you to live in a new home that is easier to navigate, is more energy efficient, and has lower maintenance costs – all this with no monthly mortgage payments. You always retain ownership of your home. No matter how large the loan balance is, you never have to pay more than the appraised value of the home.

Springfield Commons is an FHA approved neighborhood, and we have lots available. For more information on our development, please go to www.springfieldcommons.net or call us at 814-231-2800, extension 2.


For more information on the HECM program, search online for a HECM counselor or call 1-800-569-4287.

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