Home Equity Conversion Mortgage (HECM)

A Home Equity Conversion Mortgage (HECM) is a federally insured reverse mortgage. Over ninety percent of all reverse mortgages are HECMs. The Federal Housing Administration (FHA) sets limits on how much a HECM reverse mortgage lender may lend you—based on your age, your home's value or FHA's lending limit in your area—and what your total loan costs will be. HECM loans give you a wide choice in how you may receive the cash from the reverse mortgage.

Financial Freedom examined all aspects of the reverse mortgage and its cost structure to identify multiple opportunities to enhance benefits and reduce cost beyond just simply reducing the margin. As a result, we now offer variable and fixed rate HECMs within our suite of HECM products. Monthly and annually adjustable options available based on the One Year CMT index or the One Month LIBOR index plus a margin.

The new HECM fixed provides the assurance of a fixed rate for the life of the loan.

For home values under $400,000, HECM products generally provide larger loan advances than other reverse mortgages. [An exception is Financial Freedom's Cash Account Advantage Plan reverse mortgage which may offer cash advance opportunities significantly higher than other reverse mortgage products.]

Read more about Home Equity Conversion Mortgages at Financial Freedom Product FAQs

Read our Frequently Asked Questions (FAQs) about reverse mortgages in general.