Understanding HECM Reverse Mortgages: Rates, Counseling & Loan Options

At Reverse Mortgage Guides, we specialize in helping seniors explore Home Equity Conversion Mortgages (HECMs)—the most popular type of reverse mortgage backed by the federal government. Whether you're researching HECM interest rates, considering a HECM loan for purchase, or seeking HUD approved HECM lenders, our goal is to provide clear, unbiased guidance to help you make informed financial decisions.

What Is a HECM?

A HECM reverse mortgage is a government-insured loan that allows homeowners aged 62 and older to convert part of their home’s equity into cash. Unlike traditional mortgages, a HECM doesn’t require monthly payments. Instead, the loan is repaid when the borrower sells the home, moves out permanently, or passes away [1].

A HECM loan can be used for:

• Monthly income
• Lump-sum cash
• A HECM line of credit
• Purchasing a new home (HECM for purchase)

This flexibility makes HECMs a powerful tool for reverse mortgage retirement planning.

FHA HECM Loan & HUD Counseling

The FHA HECM loan is regulated by the Federal Housing Administration and requires borrowers to complete HECM reverse mortgage counseling. This session, often conducted by HUD HECM counseling agencies, helps seniors understand the pros, cons, and long-term implications of the loan [1].

You can find a HECM counselor near me through HUD’s approved network. Counseling typically costs around \$125 and lasts 60–90 minutes. It’s a required step before applying with HECM reverse mortgage lenders.

HECM Mortgage Rates & Costs

Understanding HECM mortgage rates is key to choosing the right loan. Rates vary based on loan type:

• HECM fixed rate reverse mortgage: Offers a lump sum with a stable interest rate.
• Adjustable-rate HECMs: Allow for flexible payment options like monthly disbursements or a line of credit.

Use our HECM mortgage calculator to estimate your loan amount, costs, and current HECM rates. Costs may include:

• Origination fees
• Mortgage insurance premiums
• Closing costs
• Servicing fees
• Interest (which accrues over time)

HECM Loan for Purchase

A home equity conversion mortgage for purchase allows seniors to buy a new home using a reverse mortgage. This is ideal for downsizing, relocating, or moving closer to family without taking on monthly mortgage payments [1].

The home equity conversion mortgage FHA program ensures that eligible borrowers can access this option safely and securely. It’s a great alternative to traditional financing for retirees.

Choosing the Best HECM Lenders

Finding the best HECM lenders is essential. We help you compare:

• HUD HECM lenders
• FHA HECM providers
• Local and national HECM reverse mortgage lenders

Whether you're looking for reverse HECM options in your area or want to apply for reverse mortgage online, we connect you with trusted professionals who understand your needs.

Reverse Mortgage Services & Support

We offer tools and resources to help you:

• Understand HECM reverse mortgage rates
• Compare HECM mortgage options
• Find HECM counseling agencies
• Explore reverse mortgage programs tailored to your goals

Whether you're new to reverse mortgages or ready to move forward, we’re here to support you every step of the way.