The Home Equity Conversion Mortgage (HECM) for Refinance allows people at least 62 years of age to refinance a home through a reverse mortgage.
This can be a valuable option for people who want to eliminate their monthly mortgage payments and perhaps also tap into additional equity in the form of cash back to the owner, a monthly annuity, an equity line to be used as needed, or some combination of the above.
Since this is a reverse mortgage product, monthly payments are not made on the home after the refinance. The owner’s equity position and age determine:
- Whether cash is needed from the owner to eliminate the mortgage payments
- Whether additional equity is available for the owner.