The amount of money you can borrow with a Home Equity Conversion Mortgage (HECM) has several factors including your age, what the current mortgage interest rate on your home is, the appraised value of your home and also your initial mortgage insurance premium.
It’s important that you are aware that the up-front costs you may incur including fees interest and ongoing mortgage insurance. In addition, financing those costs will reduce the net loan amount available to you. Here at Equity Mortgage we want to help you understand the up-front costs and how they’ll affect your loan, most costs you may have to pay up front in a traditional mortgage can be financed into a HECM loan and you want to choose what is best for you.
Receive all of your funds up front as a lump sum. (Reserved for those with a fixed interest rate mortgage).
Draw from a line of credit and receive monthly payments for a fixed period of your choosing.
Draw from a line of credit and receive monthly payments for as long as you live in the property.
Receive equal monthly payments for a fixed period of your choosing.
Receive equal monthly payments as long as you live in the property.
HECMs are insured by the Federal Housing Administration (FHA). The FHA requires that each borrower meet with a counselor from the U.S. Department of Housing and Urban Development (HUD). This will help you make an informed decision about whether a Home Equity Conversion Mortgage is the right financial solution for you and your family.
You can use the money you receive from a Home Equity Conversion Mortgage for anything you want. Those funds are just sitting there in the equity of your home right now!
Equity Mortgage LLC
2975 W. Executive Pkwy Ste 133
Lehi, UT 84043
Company NMLS ID: 1382816
Utah DRE License: 9441193
This material is not from HUD or FHA and has not been approved by HUD or a government agency.