Types of Reverse Mortgages

1. Home Equity Conversion Mortgages (HECM’S):

These are federally insured reverse mortgages backed by the U.S. Department of Housing and Urban Development (HUD).

The amount you can borrow depends on a number for factors, such as the appraised value of your home, your age, current rates, the type of loan you would like, your ability to pay taxes and insurance on your home.

The older you are and the more equity you have, the larger loan you will qualify for, typically. The opposite is also true. The younger you are and less equity you have in your home, the smaller your loan will be.

With the HECM you may choose from various options:

• A fixed rate, one time disbursement.
• Monthly draws
• A line of credit-which you can draw on it as needed
• A combination of these

2. Proprietary Reverse Mortgages:

These loans are backed by private companies. The loan amounts available are higher and may include jumbo loans. And, often the fees for these loans are lower than HECM’s.