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If you are an American senior, age 62 or over and own your home, this reverse mortgage information article is for you. Today I write about HECM. A HECM reverse mortgage information rules, that the borrower can get several payments during the life of the loan. The target of the HECM reverse mortgage loan is, that a senior borrower can keep his standard of living on a good level, despite of the fact, that his income has decreased. Actually the money comes from the equity of the borrower`s home, but he will not pay anything back until the closing moment of the loan. This happens, when a borrower moves permanently away or dies. This is one of the corner stones in the HECM reverse mortgage information. 1. Now You Can Buy A New Home With HECM. You have to check the HECM terms, because they differ from state to state. A normal case is, that HECM terms allow you to buy a new home, because the idea is that the borrower has the freedom to use the money, how he wants. 2. New HECM Loan With Fixed Interest Rate. Normally, when you take a HECM reverse mortgage loan, it has a variable interest rate. This means different payments on different months, but follows the market rates, which is fair in a way. Now you can get HECM with a fixed rate. The benefit is obviously a mental one. You will get a sure reverse mortgage information and with it some peace into your mind, because you know, how much you have to pay back in the closing. 3. You Can Order, How You Receive The Payments. With an ARM HECM option a borrower can choose how the lender pays to him. The alternatives are as a lump sum, as monthly payments, as a credit line or as a combination of all these. You have to think, for which purposes you need the money. 4. Reverse Mortgage Information, New Margin Index. The lenders do not anymore use the CMT index to measure margins for the reverse mortgage loans. The new index is called Libor, a London based index. This Libor offers better terms for the borrower with the idea to maximize the cash return to the borrower. 5. New Requirements Concerning Counseling. There has been one problem, because many seniors have not understood the terms of the reverse mortgage loans. That is the reason, why the U.S. Department of Housing and Urban Development and the Federal Housing Administration have written new counseling instructions, which try to guarantee, that a borrower will understand all the key points before signing. 6. The Higher Loan Limits. The new Obama administration increased the reverse mortgage loan limit, which a borrower can take on his house. To the end of the fiscal year 2009 it was raised from $417,000 to $625,500. 7. New Rules About Refinancing. HUD and FHA have updated their rules of refinancing concerning the senior borrowers, who have made it to the maturity date on their present reverse mortgage. The new terms include so called Anti-Churning Disclosure form, which prohibits lenders to benefit from the reverse mortgage refinance on behalf of the borrower. Juhani Tontti, B.Sc., Marketing. A HECM Offers All Benefits And A Counselor Explains How Does A Reverse Mortgage Work, So You Get A Good Product. Visit: Reverse Mortgage Information
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