Rethink Reverse Mortgage…

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The Federally Insured Reverse Mortgage (HECM)…is not the reverse mortgage of the past!

What is a HECM?

HECM – Home Equity Conversion Mortgage – Unlike the traditional mortgage where you borrow money and make monthly payments The Federally Insured Reverse Mortgage (HECM) is the opposite. You borrow money, but instead of making monthly payments, you receive monthly payments or a lump sum of money. If you are 62 years or older, you can tap into the locked up equity in your home without selling your home or making monthly payments while keeping full title and ownership to your home. As you live in the home, the home is still accumulating equity and you have no monthly mortgage payment!

HECM's are revolutionizing the way seniors are achieving financial independence. The HUD’s HECM is a safe and federally insured program that gives older Americans greater financial security. Forget the reverse mortgages of the past! Many seniors are bombarded with falsehoods about the stability of the program. Unfortunately, the lack of knowledge of this program has ignited the old saying, “people fear what they don’t understand”. So, please exercise your own due diligence and get the proper answers. Please take the time to read through the Questions and Answers and contact a First National Bank Advisor if you have any questions. Our expert advisors will provide free advice. Since your home is probably your largest single investment, it’s smart to know more about HECM's and decide if one is right for you!

Growing Popularity of HECM's

Until a few years ago, HECM's were virtually an unknown financial tool for many older Americans. Now, over 500,000 older Americans, 62 years or older have benefited from a HECM.

At a time when it is difficult for older Americans to keep up with the financial pressures of the new economy, the message of HECM's being a logical and sometimes necessary part of financial planning is finally getting through.

Insured by the Federal Housing Administration (FHA), a HECM in many ways is a reward for the hard work you put into building the equity in your home. You can access the equity in your home and use the money tax-free without having to make any monthly payments.