The Incredible, Flexible Home Equity Conversion Mortgage

If the FHA insured reverse mortgage, known as the Home Equity Conversion Mortgage (HECM), is anything, it is an incredibly flexible financial instrument.

If the FHA insured reverse mortgage, known as the Home Equity Conversion Mortgage (HECM), is anything, it is
an incredibly flexible financial instrument.

Do you need a monthly income from the HECM? It can do that.

How about a line of credit? Check.

You need a lump sum of cash? Double check.

You might be difficult to please and say “I want it all. Give me all of the above.” Triple check and mate!

Yes, the HECM reverse mortgage program can do all of this without requiring the homeowner to ever make a payment on the loan as long as he or she live
in the home, pays the property taxes and homeowners insurance on time and maintains the home.


Before we go much further, I do need to tell you that a HECM reverse mortgage is a loan specifically designed for homeowners age 62 and above. It allows
the homeowners to tap into a portion of the value of their primary residence without ever having to make a mortgage payment (unless they choose to).

The home stays in the name of the homeowner and they must continue to pay the property taxes and insurance on it as well as live there as their primary
residence and maintain the home. As long as at least one homeowner lives in the home, they never have to make a mortgage payment.

This is still a loan, interest is still charged, but the homeowner does not actually pay it. So what happens to it? The interest gets added to the loan
balance. Th loan balance increases over time. If the loan begins with a balance of $100,000, it could grow to $150,000 or $200,00 or more over time.

It is the job of the loan officer and housing counselor (because homeowners must talk with a revere mortgage housing counselor prior to obtaining a reverse
mortgage), to make sure that the homeowners understand this concept (called negative amortization), and that they are OK with it.


Now, back to the rest of the story.

I do, however, need to qualify the above statements with my favorite answer to most questions…it depends. It depends on the situation of the homeowners.

If the homeowners own their home free and clear, then yes, all of the above options are available to them. But if they have a mortgage on the home, that
existing lien must be paid off in full from the proceeds of the reverse mortgage before any additional funds can be used. This can limit, or possibly
even eliminate the other options.

For example, if someone has a $400,000 home that they own free and clear (no mortgage or other loans against it), they may qualify, depending up their
ages and the interest rate, for $220,000. These people have all the options listed above available to them. HUD (Department of Housing and Urban Development),
does limit the amount available during the first year to 60% of the amount available ($220,000 x 60% = $132,000). As long as they qualify under the
credit and income guidelines, the initial disbursement limit is the only restriction.

However, if they have a mortgage of $200,000 on the home, this loan must be paid off first, leaving them just $20,000 to spend as they choose. This amount
of money would only pay out a very small amount in a monthly payment, but they still have the option to take it as a lump sum, line of credit or a
combination of the two. Also, don’t forget the main benefit of this situation is that the homeowners get out from under the principal and interest
payment from the $200,000 mortgage saving them thousands of dollars per year.

Everyone’s situation is different, but the beauty of this program is ability to customize it to fit the needs of different situations.

Bruce Simmons

Bruce Simmons

I absolutely love what I do - working with senior homeowners to help them live a more comfortable, flexible and secure retirement. I have the absolute best customers in the world, and even though I worked in the forward mortgage business for a number of years, I could never go back to doing conventional loans. I'm a 100% reverse mortgage specialist.

5.0

I was hesitate about getting a reverse mortgage until Bruce Simons put my mind at rest. He is easy to work with, extremely knowledgeable and efficient. Things get done and he will make sure that you understand every part of the process. I interviewed several other people and he was hands down.....The only choice.

Doing a Reverse Mortgage is a major decision, when working with Bruce he came out personally to go over every thing in detail, there was no pressure to finalize the transaction, I had even put the loan on hold for awhile even though I had locked in my rate, I had called Bruce off and on for a few weeks to ask questions that I had concerns about and he was always available to talk to me. In the end it gave me time to feel comfortable about my decision to move forward with the Reverse. Bruce was very pleasant to work with and would certainly recommend Bruce if you are going to consider a Reverse Mortgage.

Bruce Simmons at American Liberty is one of the best in the reverse mortgage industry. I have known and worked with him for years and he always does a great job. You are in good hands with Bruce and know that he will take good care of you or your loved ones every step of the way.

Best thing I ever did! Bruce Simmons at American Liberty Mortgage is the best. He is always there to answer your questions, and can easily explain the whole idea of a Reverse Mortgage. He takes the time and goes through the entire process with you. It worked out so well for me. Thank You Bruce!

We had researched Reverse Mortgages for 5 years and after hearing about Bruce Simmons and meeting with him, we finally decided to move forward with the Reverse Morgage. It has been over a year now and we are still very pleased with our decision. We think Bruce is very professional, knowledgeable and honest. Thank you, Bruce, for all your help.

I first met Bruce Simmons 2017. I found him on the internet. I was looking for someone local. I called him and explained I was only looking into doing a reverse mortgage, so I did not want him to think this was something I was ready to do. Bruce was friendly, very open about the basics of a reverse mortgage. Bruce came to my home and presented the figures and other details that he could offer. The first thing that impressed me was this was not a hard sell, more of a informational meeting. He was very open about all of the details, and answered my questions without hesitation. What really was evident was he was establishing a relationship with me, and I realized he knew I would not take the loan at that time. There was not enough equity in my home, and I would have to bring money to the table. Although I was not ready to do a loan, Bruce assured me he is always available for questions. Four years later, I finally did do a reverse mortgage, and I couldn't be happier with having done it. I have done away with a mortgage payment which allows me to fund my retirement account with that mortgage payment. We did some much needed landscaping with our cash out transaction, and will move on to improvements inside of the house. My reverse mortgage has a line of credit, and I feel sense security knowing it is there if I need it. Bruce explained that a reverse mortgage is not for everyone, but I feel certain that he paved the way for a strategy that worked for me. I will definitely do a refinance when the time is right. I will check in with Bruce to be sure what the benefits are when I do it again.

I have worked with Bruce Simmons for 15 years. Bruce is one of the best in the industry. He is extremely knowledgeable, kinds and detailed in what he does. His clients love working with him and trust him to help them with their Reverse Mortgage loans. I would recommend Bruce to anyone I know that is thinking about or wanting to do a Reverse Mortgage. He will always take very good care of the customers and make sure their needs are met! Class act and one of the best in the industry by far!

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Kathleen Mitchell
Kathleen Mitchell

Just left us a 5 star review

google
Kathleen Mitchell
September 18, 2022

I was hesitate about getting a reverse mortgage until Bruce Simons put my mind at rest. He is easy to work with, extremely knowledgeable and efficient. Things get done and he will make sure that you understand every part of the process. I interviewed several other people and he was hands down.....The only choice.

google
Mike Hoeffner
August 30, 2022

Doing a Reverse Mortgage is a major decision, when working with Bruce he came out personally to go over every thing in detail, there was no pressure to finalize the transaction, I had even put the loan on hold for awhile even though I had locked in my rate, I had called Bruce off and on for a few weeks to ask questions that I had concerns about and he was always available to talk to me. In the end it gave me time to feel comfortable about my decision to move forward with the Reverse. Bruce was very pleasant to work with and would certainly recommend Bruce if you are going to consider a Reverse Mortgage.

google
Jonathan Maiolatesi
August 22, 2022

Bruce Simmons at American Liberty is one of the best in the reverse mortgage industry. I have known and worked with him for years and he always does a great job. You are in good hands with Bruce and know that he will take good care of you or your loved ones every step of the way.

google
Ronda Giblin
August 20, 2022

Best thing I ever did! Bruce Simmons at American Liberty Mortgage is the best. He is always there to answer your questions, and can easily explain the whole idea of a Reverse Mortgage. He takes the time and goes through the entire process with you. It worked out so well for me. Thank You Bruce!

google
John Bell
August 20, 2022

We had researched Reverse Mortgages for 5 years and after hearing about Bruce Simmons and meeting with him, we finally decided to move forward with the Reverse Morgage. It has been over a year now and we are still very pleased with our decision. We think Bruce is very professional, knowledgeable and honest. Thank you, Bruce, for all your help.

google
Mary Bernard
August 19, 2022

I first met Bruce Simmons 2017. I found him on the internet. I was looking for someone local. I called him and explained I was only looking into doing a reverse mortgage, so I did not want him to think this was something I was ready to do. Bruce was friendly, very open about the basics of a reverse mortgage. Bruce came to my home and presented the figures and other details that he could offer. The first thing that impressed me was this was not a hard sell, more of a informational meeting. He was very open about all of the details, and answered my questions without hesitation. What really was evident was he was establishing a relationship with me, and I realized he knew I would not take the loan at that time. There was not enough equity in my home, and I would have to bring money to the table. Although I was not ready to do a loan, Bruce assured me he is always available for questions. Four years later, I finally did do a reverse mortgage, and I couldn't be happier with having done it. I have done away with a mortgage payment which allows me to fund my retirement account with that mortgage payment. We did some much needed landscaping with our cash out transaction, and will move on to improvements inside of the house. My reverse mortgage has a line of credit, and I feel sense security knowing it is there if I need it. Bruce explained that a reverse mortgage is not for everyone, but I feel certain that he paved the way for a strategy that worked for me. I will definitely do a refinance when the time is right. I will check in with Bruce to be sure what the benefits are when I do it again.

google
LESLIE HINES
August 19, 2022

I have worked with Bruce Simmons for 15 years. Bruce is one of the best in the industry. He is extremely knowledgeable, kinds and detailed in what he does. His clients love working with him and trust him to help them with their Reverse Mortgage loans. I would recommend Bruce to anyone I know that is thinking about or wanting to do a Reverse Mortgage. He will always take very good care of the customers and make sure their needs are met! Class act and one of the best in the industry by far!