Reverse mortgages in Augusta, GA

Understanding reverse mortgages

Reverse Mortgages are not what you think they are.

A reverse mortgage loan, often called a Reverse Mortgage, may allow eligible homeowners to convert a portion of home equity into funds without a required monthly principal and interest payment while loan obligations are met.

The amount available and the way funds may be received depend on factors including borrower age, home value, existing mortgage debt, interest rates, and the selected Reverse Mortgage or home equity program.

• Supplement retirement income
• Plan for home improvements
• Establish a flexible line of credit
• Purchase a new primary residence

How HECM and reverse mortgage relate

“Reverse mortgage” is the category. Most people using the term mean a Home Equity Conversion Mortgage (HECM), which is the version insured by the Federal Housing Administration and the most common option in the United States. It is not the only one. Proprietary programs are private and not government-insured, and a senior line of credit works differently again. All of them are loans secured by the home, and all of them must be repaid.

• FHA-insured HECM — the federally insured program, for eligible homeowners age 62 and older
• Proprietary reverse mortgages — private, non-FHA programs, often used for higher-value homes, and available from age 55 in some eligible states
• Senior Home Equity Line of Credit — an open-ended line with interest-only payments rather than a reverse mortgage

Which one fits depends on your age, your home’s value, what you owe on it, and what you are trying to accomplish. We can walk through the comparison with you.

Ask Samantha about reverse mortgage Learn about Mortgage Capital HELOC For Seniors →