HECM Saver

A Home Equity Conversion Mortgage (HECM) Saver mortgage is very much like a standard reverse mortgage, but has lower upfront loan closing costs. It is designed for senior homeowners who want to borrow a smaller amount than what would be available with a HECM Standard loan. The HECM Saver lowers costs by almost eliminating the upfront Mortgage Insurance Premium.
A HECM Saver reverse mortgage has an upfront premium of only .01 percent of the property’s value, compared to the HECM Standard option upfront premium of 2 percent. However, borrowers will receive 10 to 18 percent less with a HECM Saver reverse mortgage than the HECM Standard.

HECM borrowers may opt to receive funds as a lump sum at loan origination, establish a line of credit or request fixed monthly payments that are disbursed for as long as they continue to live in the home. Also like a normal reverse mortgage, funds are advanced to the borrower and interest accrues, but the outstanding amount is not due until the borrower passes, and the debt can be repaid with the sale of the home. If the balance due on the loan exceeds the value of the home, FHA insurance pays the difference. As always with a reverse mortgage, there is no risk of passing debt to heirs.

To learn more about the HECM Saver option and see if it’s the right solution for your needs, please speak with a Trinity Reverse Mortgage