A Home Equity Conversion Mortgage or HECM is the only reverse mortgage insured by the Federal Housing Administration. This insurance makes it an attractive option for homeowners, 62 and older, looking for a financial solution to improve their retirement. Insurance protection means the borrower will never have to repay more than the value of the home when the loan becomes due. Furthermore, if the housing market declines, any payments from a line of credit or monthly disbursements cannot be lowered. The borrower pays for the insurance — a 2% initial mortgage insurance premium (MIP) at closing and an annual MIP equal to 0.5% of the outstanding loan balance. You can finance the MIP into the loan.