It is an age based (actuarial driven) mortgage - calculated using the current market value of the home and the age of the youngest borrower - designed to match the normal life expectancy of the borrowers.
I prefer to call it: The Flexible Retirement Mortgage. The HECM mortgage gives every borrower Options and Choices. The HECM mortgage "monetizes the locked-up equity in home- into liquid spendable cash. It can be taken in a lump sum, a payment each month, or allowed to stay in guaranteed, non cancelable line of credit.
Just like any other mortgage they simply pay of the mortgage owed to the Bank. There are no prepayment penalties. Any remaining equity belongs to the borrowers or to their estate.
Based upon the age of the youngest borrower approximately 50%. Older borrowers may expect more and younger borrowers will qualify for less.
Age 62 and up. No Federal - State or local tax or property liens. Borrowers must have sufficient monthly retirement cash flow to meet minimum income and expense underwriting requirements.
Normally at least 50%
Just like any other mortgage you simply pay of the mortgage owed to the Bank. There are no prepayment penalties. Any remaining equity belongs to the borrowers or to their estate.
When the last borrower dies or permanently vacates the home, the mortgage balance becomes due.
*Borrower must occupy home as primary residence and remain current on property taxes, homeowner's insurance, the costs of home maintenance, and any HOA fees.
"Thank you so much for taking the time to teach our Ky and Oh agents at Huff Realty. I have heard great things about your course, our agents have learned so much. Thank you."
"Dan and I want to sincerely thank you for all your hard work on our behalf as we took our journey towards our new home. We appreciated your help and understanding during Dan’s illness and your advice and guidance all along the way. We are so happy with our new home and know this would not have been possible for us without this program. Thank you again so much."
"It’s a long time coming but wanted to thank you so much for the planter you sent last year after closing. It sits on one table all the time. Looks very nice. Also, your phone call for my birthday last month was highly appreciated. This last year has been very stressful, so any act of kindness is AWESOME!!! Thanks again! That was so nice of you."
" A few months ago, you didn’t even know I existed. I am glad we met!! I’m a very simple man, but I’ve had opportunities for many roads through life that would only draw me away from where my hearts belong. Because of my simplicity I have only longed for a few things through life. Having a home is one of them! I know you may do this every day; however, if you only knew a piece of who I am, you would really know this one of dreams comes true. I appreciate so much what you have done from my heart. "
"Mr. Bowers, We want to thank you for all the hard work you put in to help us. Words cannot express how we feel. I know a lot of hours had to go into this and I feel really cared and wanted to help us. Hope I wasn’t too much trouble, but a lot of prayer went into this that Gods will be done whatever way it went. Again, thank you. May you and your family have a blessed thanksgiving may He always watch over you. …. And God bless "
"Mr. Bowers was very congenial, knowledgeable & informative & offered a personal touch to my interview & closing. He was thorough & understanding."
"Everything was great. We had some unexpected problems, but Mike and his staff worked with us to solve them. Thanks everybody!"
"Mike had excellent communication throughout the process. He made everyone feel comfortable about asking questions and provided information in a timely manner. Mike is extremely knowledgeable about reverse mortagage and that made us feel confident in the process."
Back to top
Alabama Consumer Credit License 22123; Alaska Broker/Lender License AK1025894. Arizona Mortgage Banker License 0926603; Arkansas Combination Mortgage Banker/Broker/Servicer License 109250; Licensed by the Department of Business Oversight under the California Residential Mortgage Lending Act, License 4131356; Loans made or arranged pursuant to a California Finance Lender Law license, 60DBO93110; Colorado Mortgage Registration 1025894; Connecticut Mortgage Lender License ML-1025894; Delaware Lender License 028515; District of Columbia Mortgage Dual Authority License MLB1025894; Florida Mortgage Lender Servicer License MLD1827; Georgia Mortgage Lender License/Registration 46648; Hawaii Mortgage Loan Originator Company License HI-1025894; Idaho Mortgage Broker/Lender License MBL-2081025894; Illinois Residential Mortgage Licensee MB.6761115; Indiana-DFI Mortgage Lending License 43321; Iowa Mortgage Banker License 2019-0119; Kansas Mortgage Company License MC.0025612; Kentucky Mortgage Company License MC707287; Maine Supervised Lender License 1025894; Maryland Mortgage Lender License 21678; Massachusetts Mortgage Broker and Lender License MC1025894; Michigan 1st Mortgage Broker/Lender/Servicer Registrant FR0022452; Minnesota Residential Mortgage Originator Exemption MN-OX-1025894; Mississippi Mortgage Lender 1025894; Missouri Mortgage Company License 19-2472; Montana Mortgage Broker and Lender License 1025894; Nebraska Mortgage Banker License 1025894; Nevada Exempt Company Registration 4830. Licensed by the New Hampshire Banking Department, Mortgage Banker License 19926-MB; Licensed by the New Jersey Banking and Insurance Department. New Jersey Residential Mortgage Lender License 1025894; New Mexico Mortgage Loan Company License 1025894; North Carolina Mortgage Lender License L-186305; North Dakota Money Broker License MB103387; Ohio Residential Mortgage Lending Act Certificate of Registration RM.804535.000; Oklahoma Mortgage Lender License ML012498; Oregon Mortgage Lending License ML- 5208; Pennsylvania Mortgage Lender License 72932; Rhode Island Lender License 20163229LL. Rhode Island Loan Broker License 20163230LB; South Carolina BFI Mortgage Lender/Servicer License MLS-1025894; South Dakota Mortgage Lender License ML.05253; Tennessee Mortgage License 190182; Texas Mortgage Banker Registration 1025894; Utah Mortgage Entity License 8928021; Vermont Lender License 6891; Virginia Mortgage Broker and Lender License, NMLS ID #1025894 (www.nmlsconsumeraccess.org); Washington Consumer Loan Company License CL-1025894; Wisconsin Mortgage Banker License 1025894BA; Wyoming Mortgage Lender/Broker License 3488. (866) 200-3210. Subject to Credit Approval.
Charges such as an origination fee, mortgage insurance premiums, closing costs and/or servicing fees may be assessed and will be added to the loan balance. As long as you comply with the terms of the loan, you retain title until you sell or transfer the property, and, therefore, you are responsible for paying property taxes, insurance and maintenance. Failing to pay these amounts may cause the loan to become immediately due and/or subject the property to a tax lien, other encumbrance or foreclosure. The loan balance grows over time, and interest is added to that balance. Interest on a reverse mortgage is not deductible from your income tax until you repay all or part of the interest on the loan. Although the loan is non-recourse, at the maturity of the loan, the lender will have a claim against your property and you or your heirs may need to sell the property in order to repay the loan, or use other assets to repay the loan in order to retain the property.
These materials are not from HUD or FHA and the document was not approved by HUD, FHA or any Government Agency. For licensing information, go to: www.nmlsconsumeraccess.org