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Compare HECM Saver to HELOC

Similar to a Home Equity Line of Credit (HELOC), the HECM Saver provides low up-front closing costs. However, unlike a HELOC, the HECM Saver does not require a monthly loan payment. With the HECM Saver, repayment is not due as long as you live in the home as your primary residence, continue to pay required property taxes and homeowners insurance, and maintain the home according to FHA requirements.

A HELOC’s interest rates are usually higher than a first mortgage loan and require monthly loan payments. A HELOC will also generally require you to maintain a certain level of equity in your home or the HELOC may be closed. And with the recent tightening of the financial market, many lenders have discontinued or significantly revised their HELOC programs, making access more difficult. With the HECM Saver homeowners have an alternative to the HELOC.