A Home Equity Conversion Mortgage (HECM) is a federally insured reverse mortgage. Over ninety percent of all reverse mortgages are HECMs. The Federal Housing Administration (FHA) sets limits on how much a HECM reverse mortgage lender may lend you—based on your age, your home's value or the FHA's lending limit — as well as your total loan costs. HECM loans give you a wide choice in how you may receive the cash from the reverse mortgage.
Financial Freedom examined all aspects of the reverse mortgage and its cost structure to identify multiple opportunities to enhance benefits and reduce cost beyond just simply reducing the margin. As a result, we now offer variable and fixed rate HECMs within our suite of HECM products. Monthly and annually adjustable options available based on the One Year CMT index or the One Month LIBOR index plus a margin. The HECM fixed provides the assurance of a fixed rate for the life of the loan.
In addition, the President recently signed into law an economic stimulus bill under the American Recovery and Reinvestment Act of 2009, which raised the national lending limit for HECM reverse mortgages to $625,500. Many seniors have already benefited from an increased cash benefit since the lending limit was raised. Ask us today and determine how much you may be eligible under the new lending limit.
Read more about Home Equity Conversion Mortgages at Financial Freedom Product FAQs
Read our Frequently Asked Questions (FAQs) about reverse mortgages in general.