Shopping for a Home Equity Line of Credit or Home Equity Loan? If you are 62 or older, consider this...

A Home Equity Conversion Mortgage (HECM) – also known as a Reverse Mortgage – offers a line of credit option with many of the benefits of a traditional Home Equity Line of Credit (HELOC), plus some significant advantages.​

  • Converts home equity into funds you can access as needed
  • Federal Housing Administration (FHA) insured
  • Flexible payment feature – Giving you freedom and flexibility in how you manage your monthly expenses
    • No required monthly payment on principal and interest required. As with any home-secured loan, you remain responsible for property taxes, homeowners insurance, and property maintenance in order for the loan to remain in good standing.​
    • You can pay down your principal and interest if and when you choose, no pre-payment penalties apply.​​
  • The unused line of credit grows over time, giving you more available funds. This means that the less you take out up front, the more you’ll be able to borrow later.
  • Lender cannot cancel or reduce your line of credit, as long as you meet your loan obligations.
  • No pre-defined loan maturity date: Loan remains in force and no principal and interest payments are required until borrowers move, pass away or sell the home, as long as they meet their loan obligations.
  • You can opt to convert the line of credit into a monthly stream of funds at any time in the future, if you so choose.