HECM Refinance: Reverse Mortgage Refinance
What is a HECM Reverse Mortgage for Refinance Loan?
A HECM Reverse Mortgage is a Retirement tool designed to help seniors live with greater financial freedom in retirement by giving them access to the equity they’ve built up in their home in order to eliminate monthly mortgage payments, consolidate debts, open a line of credit, or receive a monthly supplemental income payment.
Throughout the life of a forward mortgage, payments are made toward principal and interest gradually lowering the balance of the loan and building equity. In Utah, a Reverse Mortgage, also known as a Home Equity Conversion Mortgage (HECM), allows the homeowner to access the equity they have built in their home.
For Utah residents, an HECM refinance is an ideal way for seniors to enjoy all the benefits of a reverse mortgage such as no principal and interest payments for life. With a reverse mortgage the equity in the home makes the payments and the borrower is only responsible for typical property expenses such as taxes, insurance and HOAs. Having a reverse mortgage has many of the same benefits of owning a home free and clear, but without the cost.
Who is eligible for an HECM refinance?
What are the benefits of this loan?
- Access home equity to consolidate Debts, establish a line of credit, or pull out cash
- Establish monthly payments from the bank to supplement a fixed income
- Reduced income qualifying requirements
- Minimal Credit requirements
- No Mortgage payments as long as the homeowner lives in the home