Home Equity Conversion Mortgage Counseling

A Home Equity Conversion Mortgage (HECM) is a reverse mortgage loan against your home that does not have to be repaid for as long as you live in a home. You may receive funds in the following ways

• All at once in a single payment of cash
• In regular monthly payments
• As a line of credit that allows you to draw against the balance, or
• A combination of the above

Carefully Consider Your Options - Homeowners need to carefully consider the consequences of this type of loan, and fees charged for originating and processing the loan should be compared between several lenders. Home Equity Conversion Mortgage counseling assists clients in considering

• Who else should be involved in this decision
• Alternatives to the HECM
• The best time to take out this loan
• Which lender would be best to use
• What interest rate should be selected, and
• How the funds from the loan should be used

The AARP has additional information on HECM at the website http://www.aarp.org/homeloans. This website includes a glossary of home equity loan terms and a worksheet that helps you compare home equity lenders.