HECM Reverse Mortgages continue to grow

A U.S. Department of Housing and Urban Development insured product, HUD endorsed a record 5,841 Home Equity Conversion Mortgage (HECM) loans during the month of February and 26,160 for the first five months of the current federal fiscal year. Year-to-date totals represent a 56 percent increase over the 16,731 loans insured during the same period in 2005(1). This benchmark further attests to the acceptance of reverse mortgages as a financial planning tool.

Reverse mortgages enable seniors (62 years and older) to tap the equity in their home to receive tax-free(2) payments either as a line of credit, a monthly payment or a lump sum amount. A reverse mortgage is only repaid (on the portion taken) when the senior moves out of his/her house, and can never exceed the value of the home.

To speak to a HECM Reverse Mortgage Specialist please call 1-888-973-8377.