Understanding Reverse Mortgage Schemes

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HeroFin Corp
UNDERSTANDING
REVERSE MORTGAGE SCHEMES
www.herofincorp.com
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WHAT IS A REVERSE MORTGAGE SCHEME?
A reverse mortgage is a loan that allows
homeowners over 62 years of age to borrow money
against the equity in their homes, without having
to make monthly mortgage payments.
A reverse mortgage is a loan that allows
homeowners over 62 years of age to borrow money
against the equity in their homes, without having
to make monthly mortgage payments.
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HOW DOES A REVERSE MORTGAGE SCHEME WORK?
The lender pays the homeowner in a lump sum, a
line of credit, or monthly payments.
The loan balance increases over time as interest
and fees are added to the loan.
When the homeowner dies or sells the home, the
loan must be repaid, usually from the sale
proceeds of the home.
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TYPES OF REVERSE MORTGAGE SCHEMES
The Home Equity Conversion Mortgage (HECM) is the
most popular reverse mortgage program, insured by
the Federal Housing Administration (FHA).
The HECM Standard loan allows homeowners to
access more equity but requires upfront fees.
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ADVANTAGES OF A REVERSE MORTGAGE SCHEME
Provides a steady source of income in retirement
without the need to sell the home or move.
Allows for flexibility in how the funds are
received (lump sum, line of credit, monthly
payments).
No monthly mortgage payments are required during
the loan term.
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