HECM Reverse Mortgage accesses equity safely.

In this age of FAKE NEWS, you might be listening to the jaded misinformation of the forward mortgage industry who may well have told you how they can get you into another mortgage with payments and leave you with a little cash for your trouble. Don’t do it until you hear one of us HECM guys explain what can happen to you. First of all, you may not be eligible for a HECM for another year after you do that.

Those who prevail will find truth and WIN HECM BENEFITS. Consider from what source you heard about HECMs and then hear the oft played tune of the competition: “Oh, you DON’T WANT TO GET A REVERSE MORTGAGE” as if they cared what you want if you aren’t buying in to what “they” want. (Be careful — it’s a slippery slope).

And, for proof, these five myths are played for you, hoping you will refinance with them instead of the HECM originator who promises a much better scenario. MAKE NO MISTAKE — If you hook up with another cycle of  mortgage payments, you will often disqualify yourself of obtaining the HECM benefits.  Read on, and call with your questions, Warren Strycker. See “Information” tab on the home page for credentials and contact information. “I’ve been around the block now with HECM so you’ll soon see the differences.”

Here are some of the most common misconceptions about Home Equity Conversion Mortgages (HECMs)— also known as reverse mortgages — and the truth behind these myths.

1

“A HECM mortgage requires giving up ownership of your home.”

False.

As the borrower, your name remains on the title and the home is still yours—just as it would be with any mortgage. You’re required to continue paying real estate taxes, homeowner’s insurance, and providing basic maintenance to your home. Once you no longer live in the home as your primary residence, the loan balance, including interest and fees, must be repaid.* This is usually done by the homeowner or their estate selling the house.

2

“A HECM mortgage should only be used as a last resort.”   *If the borrower does not meet loan obligations such as taxes and insurance, then the loan will need to be repaid.

False.

How you use your HECM mortgage proceeds is up to you. Among the most common uses are paying off an existing mortgage or other debt in order to eliminate monthly debt payments; creating a cash reserve; supplementing monthly income; paying for home improvements; or covering medical bills or long-term care expenses.

3

“I could wind up owing more than my house is worth with a HECM, and leave my heirs with debt.”

False.

A HECM (Home Equity Conversion Mortgage is insured by the Federal Housing Administration. This insurance feature guarantees that you will never owe more than the value of your home when the loan becomes due. No debt will be left to your heirs. And if the loan balance is less than the market value of the home, the additional equity is retained by the homeowner/heirs (if the home is sold).

4

“There are restrictions on how I can use the money from a HECM mortgage.”

False.

How you use your HECM mortgage proceeds is up to you.

Among the most common uses are paying off an existing mortgage or other debt in order to eliminate monthly debt payments; creating a cash reserve; supplementing monthly income; paying for home improvements; or covering medical bills or long-term care expenses.

5

“I could wind up owing more than my house is worth with a HECM mortgage, and leave my heirs with debt.”

False.

If you understand how a mortgage works, you’ll quickly understand the HECM — except there are no monthly payments — that’s the major difference. A HECM (Home Equity Conversion Mortgage) reverse mortgage is insured by the Federal Housing Administration. This insurance feature guarantees that you will never owe more than the value of your home when the loan becomes due. No debt will be left to your heirs. And if the loan balance is less than the market value of the home, the additional equity is retained by the homeowner/heirs (if the home is sold).

6

“Reverse mortgages are too complicated.”

Not.

With most financial products, there are a number of factors to consider before you can choose what’s best for you. You can rely on your Senior Loan Officer to be a trusted resource for clear information and responsible guidance. In addition, before you apply for a government-insured Home Equity Conversion Mortgage, you are required to receive HECM mortgage counseling from a third-party counselor who’s approved by the U.S. Department of Housing and Urban Development (HUD). These independent counselors are not affiliated with any mortgage company and their only job is to ensure you fully understand every aspect of your HECM mortgage.

Consider the information on this webpage before you make any decisions, and then see contact information in home page “information” tab and ask for the HECM facts. We’ll not mislead you — that is the truth.