If you are considering a Home Equity Conversion Mortgage (HECM) loan, you will most likely want to discuss this option with your heirs. A common first reaction among heirs may be skepticism. Often times, heirs are concerned about their potential inheritance being at risk. However, many heirs are unaware that a HECM loan may not necessarily deplete all of the home’s equity.
For added piece of mind, a HECM is a nonrecourse loan. This means, if your home is sold to repay the loan, you or your heirs will never owe more than the loan balance or the value of the property, whichever is less.
If you’re a homeowner aged 62 or older, a HECM loan may help you cover living expenses, make your savings last longer and minimize the financial burden on other family members. If you’d like to learn more about how a reverse mortgage could help you, please use our Reverse Mortgage Calculator or call us at 800-218-1415.