Home Purchase Loans – So Many Choices

A reverse mortgage loan, also known as a home equity conversion mortgage, or HECM, is a type of home equity loan geared toward people 62 or older. When it comes to reverse mortgage loans, many people incorrectly believe they can’t have a mortgage to take advantage of the product. It doesn’t require monthly mortgage payments, but borrowers do have to pay their homeowners insurance, taxes and maintain their home.

Retirees can use a reverse mortgage loan to access cash, enabling them to refrain from tapping other retirement sources of income. A reverse mortgage line of credit grows at the same rate at which the loan accrues interest. Unlike a home equity line of credit, or HELOC, the line of credit can’t be frozen or reset. By using a reverse mortgage loan, people get rid of what is typically their largest bill — the monthly mortgage payment. It also can help relieve the burden on those who are helping cash-strapped seniors get by.