Reverse mortgages are a popular form of lending that helps people purchase homes and benefit from the equity they’ve built. One type of reverse mortgage is a home equity conversion mortgage or HECM. If you have equity in your current home and wish to use that to buy a new home, an HCEM for purchase reverse mortgage may be for you. Below you’ll find three attractive benefits of this form of lending.
Make No Payments
Imagine the financial freedom and feeling of peace of mind and security of not having to make any mortgage payments. This can be a reality for you if you work with a lender to get an HECM for purchase reverse mortgage. While you will be responsible for interest that accrues on loan, you will never have to make a monthly mortgage payment on the new home you have purchased. This incredible feature will benefit any homeowner.
You Own the Home
With most home loans, the bank owns your home and you make a monthly payment to the bank. Once the loan is paid in full, you own the home. However, with an HECM for purchase reverse mortgage, you own the home from the moment you finalize the loan. You will be able to continue living in the home as long as you fulfill the conditions of the loan.
Flexible Payment Options
When you use an HECM for your home purchasing needs, you use the home equity proceeds from a current home and apply them to a new purchase. If your equity proceeds don’t cover the entire cost of your new home, you can use whatever resources necessary to satisfy the remaining amount of your loan.
If you own a home in which you have built up equity, you could be in a great position to buy a new home. With an HECM for purchase reverse mortgage, you can enjoy your next home with little hassle and financial commitment.