What are "HECM"" and "Home
Keeper" mortgage programs?
These programs are special types of mortgage loans that
enable you, as an older homeowner, 62 years of age or older, to tap into the
equity you have in your home while giving you the maximum amount of flexibility
to address your particular financial needs.
You may choose a lump sum payment to pay off debt, fix up your home or
other expenses. You may wish to receive
regular monthly payments to supplement your income or a line of credit that you
can tap into at any time. You may be
able to combine the cash, monthly payment or credit line options if that fits
your needs. With the Home Keeper program
you can also get cash to help you purchase a new home.
Unlike traditional home equity loans, no repayment of the
HECM or Home Keeper mortgage is required until you no longer occupy the home as
your principal residence. At that time,
the loan becomes due and payable.
With either of these reverse mortgage programs, you
borrow against the equity of your home, and receive loan proceeds according to
the payment plan that you select. These
plans are described in upcoming columns.
As a borrower, you may change payment plans as many times as you wish,
unless you take the full amount available in a lump sum at closing.
When you sell your home or vacate it for other reasons,
the accrued interest plus what the lender has paid to you or on your behalf
through the years is due and payable, usually out of the proceeds from the sale
of your home. Any proceeds in excess of
the amount owed on the loan belong to your or your estate.