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Reverse Mortgage: HECM or HELOC?

Home Equity Conversion Mortgages (HECM), also known as reverse mortgages, can be a valuable financial tool for older adults during retirement.  Similar to other financial decisions, you need to determine if it’s the right option for you.  Both a HECM and a Home Equity Line of Credit (HELOC) allow borrowers to access their home equity as usable funds, but there are differences in how the loan is...

Reverse Mortgage: Why Now Could be the Time to Consider Refinancing

At the close of 2021, Americans felt the effects of inflations with higher costs for goods than in previous years. To help with inflation pressure, the Federal Reserve (Fed) has indicated they plan to enact their first rate hike in three years, and there could be another two before the end of 2022.1 Senior homeowners who have an existing reverse mortgage may find that with home values continuing...

Reverse Mortgage: Holiday Spending

With the holidays just around the corner, gift-giving has become even more stressful due to the current supply chain issues, limited selection, increased prices, and for those on a fixed income, having to pay for it all can be overwhelming.  According to the 2021 Bankrate Holiday Poll, 77% of US adults say they had shopping issues ranging from high prices, not finding the right item to shipping...

Reverse Mortgage: 2022 Loan Limits Increase

The U.S. Department of Housing and Urban Development (HUD), has announced that the Maximum Claim Amount (MCA) for 2022 will increase to $970,800 effective January 1, 2022.1 The MCA has increased by $148,425 from 2021’s MCA of $822,375. The FHA has increased the Home Equity Conversion Mortgage (HECM) limit for the sixth straight year.  The new loan limit allows borrowers who have higher home...

Reverse Mortgage: When does it have to be repaid?

One of the most common questions borrowers and their heirs have about a reverse mortgage loan is: when does the loan need to be repaid? A Home Equity Conversion Mortgage (HECM), also known as a reverse mortgage loan, allows homeowners who are 62 and older access a portion of their home equity by converting it into funds without having to repay the loan for as long as the loan obligations are met...