How Does a Reverse Mortgage Work?
A Reverse Mortgage or HECM (Home Equity Conversion Mortgage) is designed for homeowners age 62 and over who have a home that’s paid off or one with sufficient home equity. With an HECM, you’ll continue to own your home and you won’t have to make monthly mortgage payments. You also won’t have to repay your reverse mortgage until you sell your home or it’s no longer your primary residence.
In most cases, the cash you receive is not taxable income, so it won’t affect your Social Security or Medicare benefits. As always, you should contact your tax, financial or benefits specialist about your individual situation.
Liberty Bank’s Low-Cost HECM
Our low-cost reverse mortgage features all the traditional benefits of a reverse mortgage, while saving you thousands of dollars in closing costs. Take your funds as a lump sum, line of credit, monthly advance, or any combination that fits your needs.1