Unlock the financial potential of your home with a Home Equity Conversion Mortgage (HECM), commonly known as a reverse mortgage.
Choosing the right way to access your home's equity can feel overwhelming. Let's take a look at the key differences between HECMs and HELOCs, so you can be empowered to make an informed decision for your financial future.
Home Equity Conversion Mortgage (Reverse Mortgage)
A reverse mortgage, or HECM, is a loan that replaces your existing mortgage. It allows you to tap into your home's equity without monthly mortgage payments, offering access to cash and potentially enhancing your retirement income.
Benefits of a HECM
- Elimination of Monthly Mortgage Payments
- Access to Tax-Free Funds
- No Repayment Required During Your Lifetime (in most cases)
- Potential for a Line of Credit
Home Equity Line of Credit (HELOC)
A HELOC is a revolving loan that is secured by the value of your home with spending limitations similar to that of a credit card. You may not exceed the maximum credit limit and, similar to a traditional mortgage, you will make monthly payments for a fixed term. It is set up in addition to and independent of your current mortgage.
Benefits of a HELOC
- Low interest rates in most cases
- Lower upfront costs
- May be more suitable for short term-needs
Call or click to connect with a Liberty Loan Advisor and review your reverse mortgage refinance options.
* You must live in the home as your primary residence, continue to pay required property taxes, homeowners insurance, and maintain the home according to Federal Housing Administration (FHA) requirements. Failure to meet these requirements can trigger a loan default that may result in foreclosure.
Your current mortgage(s) and any other existing liens against the property must be paid off at or before closing. You must live in the home as your primary residence, continue to pay required property taxes, and homeowners insurance, and maintain the home according to FHA HECM requirements. Failure to meet these requirements can trigger a loan default that may result in foreclosure.
Reverse Mortgage Calculator
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