An Oklahoma-based experienced
and professional Home Equity
Conversion Mortgages expert
you can trust
Richard Carrington
More About Richard
Richard Carrington is a lifelong Oklahoma resident and a 46-year veteran of the mortgage banking industry. A senior himself, and semi-retired since 2019, Richard re-entered the mortgage origination business to address what he perceives as a need to assist senior Oklahomans with their current housing needs.
He only originates HECM loans for Edmond’s Prosperity Mortgage, LLC. and is licensed in the state of Oklahoma.
HECM Benefits:
- No required monthly payment: Payments are completely optional – you can pay interest only, principal and interest or no payment at all.
- Credit score: HECM applicants need not have perfect credit, but should be able to demonstrate an ability to properly pay their real estate-related taxes, homeowners insurance, and HOA dues, if applicable.
- You can use the money for any purpose: There are no restrictions on how you spend the money you get from your HECM.
- No tax: You don’t have to pay income tax on the money from your HECM.
- Offers retirement protection: You can get guaranteed income for life with a HECM, provided you remain in your home. During a market downturn, you won’t have to worry about pulling from your retirement accounts.
How It Works
Why HECM?
Home Equity Conversion Mortgages (HECM for short), better known as “reverse mortgages”, have been available since the Reagan administration launched the program in 1989 to address the unique variety of reasons senior citizens may have to access the equity in their home. Since the program’s inception, HECM loan investors and the regulators responsible for mortgage lending have made a number of changes to the original model, placing additional safeguards on the original program and making these loans more accessible to a greater number of senior homeowners.
Although not suitable in every situation, today’s HECM loans can provide a variety of key financial options for seniors. For example, these loans combine the reality that some seniors are struggling to live on fixed income from retirement and/or social security income sources and need additional monthly income to cover fixed expenses, or have a need for cash for home repairs, or have other investment ideas that require a cash contribution.
Unlike traditional forward refinance mortgages or Home Equity Lines of Credit (HELOCs) which require debt service in the form of repayment from a senior’s income or cash reserves, a HECM loan provides for the OPTION to make payments if the HECM borrowers so choose, or they can simply make no payments and allow the interest charges on the loan to accrue until all homeowners have left the mortgaged property permanently. All that is required is that the borrowers pay their property taxes, homeowners insurance premiums, HOA or any other property related charges when they become due, and maintain the property in generally good condition. In general, there are no restrictions for which the proceeds from a HECM loan can be used, so rather than obtaining a traditional refinance loan that creates further cash outflow demands, many seniors turn to HECM loans to solve for their needs.
One last but very important point: A HECM loan can also be used to purchase a different house that better suits the more current needs of senior homeowners and carries the same optional payment benefits, making it an ideal way for a senior homeowner to adjust their living style to better fit their current needs.
Contact Richard
Richard Carrington, NMLS #1002271
Prosperity Mortgage, LLC NMLS#1842936
400 E. 15th, Edmond OK 73013 Suite 200
Phone: (405) 641-6886
Richard is committed to compliance with all federal, state, and local fair housing laws. Richard will not discriminate against any person because of race, color, religion, national origin, sex, familial status, disability, or any other specific classes protected by applicable laws. Richard will allow any reasonable accommodation or reasonable modification based upon a disability-related need. The person requesting any reasonable modification may be responsible for the related expense.