Refinance your current home
StayEligible HECM proceeds can repay existing mortgage liens first, then support an approved advance or credit-line plan. If proceeds are insufficient, cash may be needed to close.
Reverse Mortgages
Understand how a reverse mortgage works, including homeowner responsibilities, costs and future repayment.
Consider the fit before the funds
A reverse mortgage may help eligible older homeowners access equity. A Home Equity Conversion Mortgage has age, property, counseling and financial requirements. Compare the available structure with other ways to use equity and with the goal of staying in or changing homes.
Reverse mortgage: stay in your home or buy your next one
HECM for Purchase
MoveCombine eligible reverse-mortgage proceeds with your own permitted cash contribution to purchase a new primary residence. It is not a zero-down purchase.
Keep the obligations in view
PlanNo required monthly principal-and-interest payment does not remove taxes, insurance, maintenance, association charges or occupancy requirements.
HECM borrowers must generally be at least 62. A younger eligible non-borrowing spouse may have protections under specific HUD rules; that spouse is not automatically a borrower. Counseling with a HUD-approved reverse-mortgage counselor and a financial assessment are required. HUD explains HECM purchase and refinance planning.
Smart home financing starts with strategy
Buying or refinancing? We compare options across our network of 150+ wholesale lenders, explain the trade-offs, and build a plan around your goals. Start with a pre-approval video conversation so you know what to expect before moving forward.
HECM terms and payout choices
| Term or option | What it means |
|---|---|
| Principal limit | The starting borrowing limit based on applicable home-value limits, expected rate and age of the youngest borrower or eligible non-borrowing spouse. It is not the same as cash available at closing. |
| LESA | A life-expectancy set-aside may reserve proceeds for property charges after the financial assessment. It reduces funds available for other uses. |
| TALC | Total Annual Loan Cost disclosures help compare projected costs across time and assumptions. |
| Line of credit | Eligible adjustable-rate HECMs can offer unused borrowing capacity that grows under the agreement. This is credit availability—not interest earned on cash. |
| Monthly advances / lump sum | Term, tenure or combinations may be available with the chosen structure. Fixed-rate HECMs generally use a single-disbursement structure and disbursement limits apply. |
| Non-recourse protections | HECM protections limit repayment exposure under the applicable settlement rules. Heirs who keep the home generally repay the lesser of the debt or 95% of appraised value; discuss exact options before relying on them. |
Interest and charges added to the balance can reduce remaining equity. A sale, death of the last borrower or failure to meet occupancy/property-charge obligations can trigger repayment, with specific spouse protections and deferral rules. Include family and estate goals in the conversation.
Estimate the purchase or refinance funding picture
HECM purchase / refinance planning calculator
See how age, an assumed expected rate and property value affect the initial principal limit. Then compare the funds with payoffs and costs. This is an educational estimate using HUD’s published factor table—not a reverse-mortgage offer.
HUD principal-limit factors shown on its current HECM page, effective for case numbers on/after October 2, 2017; 2026 maximum claim amount $1,249,125. Rate entries use 0.125-point increments. Borrowers must generally be at least 62; entering a younger spouse’s age does not establish that spouse’s eligibility. Model includes an illustrative 2% upfront MIP for a new HECM, entered costs and set-asides. It does not apply a prior-HECM refinance MIP credit, servicing set-aside, appraisal adjustments, actual financial assessment or first-year disbursement restrictions. Net proceeds are a budgeting estimate of total potential capacity, not cash available at closing. Purchase closing funds/eligible contributions require review. Loan balance can grow, property obligations continue and credit terms can change.
HUD factor tables and current HECM limits · Request a personalized reverse-mortgage comparison.
Want a copy of the results?
Run your calculator scenario above, then request a copy of the illustrative results.
Reverse mortgage: compare access and obligations
What is a reverse mortgage / HECM?
A Home Equity Conversion Mortgage is an FHA-insured reverse mortgage, generally available to qualified homeowners age 62 and older. It converts eligible home equity into available funds without required monthly principal-and-interest payments.
You must continue to live in the home as required, pay property taxes and insurance, maintain the property and meet the loan terms. Interest and fees increase the balance over time. Our team will explain costs, counseling, alternatives and the effect on your equity before you decide.
How HECM funds and repayment work
Depending on the loan structure, funds may be available through a line of credit, monthly advances, a lump sum or a permitted combination. Age, rates, property value and existing liens affect the amount available.
The balance generally becomes due when the last borrower no longer occupies the home as required, sells it or dies, or when other loan obligations are not met. Eligible non-borrowing-spouse protections are conditional. HECMs are non-recourse: the property generally secures repayment, with FHA insurance addressing applicable shortfalls under the program rules.
A HECM for Purchase may help finance an eligible new primary residence, but requires a substantial borrower contribution and continued property-cost payments. We can compare that approach with keeping or selling your current home.
Why Consider a HECM loan?
Getting a reverse mortgage is a big step that needs to be carefully evaluated. However, there are many advantages:
- No required monthly principal-and-interest payments; property costs and other obligations continue.
- Non-recourse protections apply under HECM rules.
- Leverage crucial retirement income
- Strategically plan for social security income
- No limitations on how the funds are used
- No prepayment penalty
- Can be used with a current primary residence or the purchase of a new home
Typically those who benefit the most from a Reverse Mortgage are those who plan to stay in their homes over an extended period and have built a decent amount of equity in their homes.
Reverse mortgage advances are loan proceeds rather than earned income; ask your tax advisor about your individual situation.
This income option for seniors can provide a steady, reliable stream of income during retirement.
Unlock your home equity! Contact us today for more information and a free, no-obligation consultation.
How to Qualify for a HECM
Age 62 or older is one HECM requirement, not a guarantee of eligibility. There are additional conditions to be able to qualify:
- Own the property outright or have considerable equity
- Occupy the property as your principal residence
- Not be delinquent on any federal debt
- Participate in a consumer information session from a HUD-approved counselor
Protections and responsibilities
HUD-approved counseling is required for a HECM. FHA insurance and non-recourse provisions provide important protections, but continued occupancy, maintenance, taxes and insurance remain your responsibility.
Eligible heirs generally may keep the property by paying the required balance or, under applicable HECM rules, 95% of its appraised value when that is less. Eligible non-borrowing spouses may qualify for a deferral period if the rules are met. Our team can explain the loan terms, and your estate or tax advisor can review their effects on your wider plan.
More detail for your financing plan
Understanding the benefits of a Reverse Mortgage can significantly impact your retirement planning. A Reverse Mortgage provides seniors with the opportunity to access their home equity without the need for monthly payments. This financial tool can be essential for those looking to enhance their cash flow during retirement. By opting for a Reverse Mortgage, homeowners can enjoy a more comfortable lifestyle while remaining in their homes. It is important to consult with a financial advisor to see if a Reverse Mortgage is the right choice for your specific situation.
Considering a Reverse Mortgage can be a beneficial option for many seniors. A Reverse Mortgage allows homeowners to convert their home equity into cash, providing financial flexibility. In Denver, CO, there are various Reverse Mortgage options tailored for your needs. Exploring a Reverse Mortgage could help you achieve your financial goals during retirement. Understanding how a Reverse Mortgage works is crucial for making an informed decision. Consult with one of our Reverse Mortgage specialists to find the best plan for your situation. Many seniors have successfully utilized a Reverse Mortgage to enhance their quality of life.
Remain an owner
You retain ownership subject to the loan obligations. Start your financing plan →
Maintain the property
Taxes, insurance, maintenance and occupancy still matter. Start your financing plan →
Plan for the household
Discuss spouse protections, heirs and future living arrangements. Start your financing plan →
HECM purchase and refinance
An FHA-insured Home Equity Conversion Mortgage can be considered by eligible homeowners age 62 or older. A HECM for Purchase can help finance an eligible primary home with a substantial down payment. Counseling through a HUD-approved agency is part of the process.
No required monthly principal-and-interest payment is not no housing cost
You must meet tax, insurance, maintenance and occupancy obligations. Interest and charges generally increase the balance when they are not paid. Discuss when the loan becomes due, the treatment of an eligible non-borrowing spouse and the options available to heirs.
A reverse mortgage can affect assets and certain needs-based benefits. Review your situation with qualified legal, tax or benefit professionals. Avoid assuming all proceeds are appropriate for every retirement plan.
The right loan begins with your goals
Tell us how you plan to use the home, what monthly payment feels comfortable and how long you expect to keep the financing. We compare options across lenders, explain the costs and help you choose a strategy with a clear next step.
Our pre-approval video call gives you time to ask questions, understand the trade-offs and coordinate your financing before an offer or refinance decision.
Homeowner obligations continue
You must meet the loan’s occupancy requirements and keep up with property taxes, homeowners insurance and maintenance. Failure to meet obligations can cause the loan to become due. Interest and fees can increase the balance over time.
Plan for the future
Discuss what happens when the last borrower leaves the home, sells or dies, and how eligible non-borrowing spouses or heirs may be affected. A HECM is nonrecourse subject to its rules; the growing balance can exceed the home’s value. Ask for an individual explanation of repayment and protections.
Explore Mortgage Calculators
Compare purchase, refinance and affordability scenarios, then let our team help turn the estimate into a financing plan.
Questions worth asking
Yes. Homeowner obligations continue, along with maintenance and applicable occupancy requirements.
No. Interest, fees and advances can increase the balance, while payments can reduce it.
It can help to discuss future housing and estate plans with family and appropriate legal or financial advisers.
HECM generally requires an eligible homeowner age 62 or older, sufficient equity, a qualifying property and completion of required counseling and financial assessment. Other reverse products have different rules. Our team will explain which path may fit your circumstances.
A reverse mortgage generally becomes due when applicable repayment events occur. Review the exact loan terms, co-borrower or spouse protections and estate plans. We can explain the financing considerations before you commit.
More resources for your financing decision
Explore these related guides and resources from your original loan page.
What our clients say
Read more about Paul Cederholm and our team on Google Business Page and Experience.com.
Plan your next move
Bring your goals and a property address if you have one. Paul Cederholm, mortgage expert and real estate financing strategist, can help you compare the financing choices and plan your next step.
Ready to begin? Start your loan application. Prefer a direct conversation? Call 303-931-6798.
*Information, scenarios, and calculations are for educational and illustrative purposes only—not a loan offer, a commitment to lend, a rate quote or an approval. Programs, costs and qualification requirements depend on the borrower, property, selected lender and current guidelines. Examples are not guaranteed results. Our team can review the details for your situation.
*Information, scenarios, and calculations are for educational and illustrative purposes only—not a loan offer, a commitment to lend, a rate quote or an approval. Programs, costs and qualification requirements depend on the borrower, property, selected lender and current guidelines. Examples are not guaranteed results. Our team can review the details for your situation. These tools do not replace a Loan Estimate, an underwriting decision, or legal or tax advice. Check all figures before relying on them; Cederholm Mortgage Advisors does not warrant the accuracy or completeness of estimates and, to the extent permitted by law, is not responsible for losses arising from reliance on these tools. This notice does not waive rights that cannot legally be waived.