Choosing The HECM Payout Plan That Is Right For You
If you’re considering a Home Equity Conversion Mortgage (HECM), also known as a Reverse Mortgage, you’re in the right place. Choosing the right payout plan for your Reverse Mortgage can be overwhelming, as several options exist. This video will guide you through the different Reverse Mortgage payout plans, helping you make an informed decision that aligns with your financial goals and lifestyle. Whether you’re looking to supplement your retirement income, pay for medical expenses, or make home renovations, we’re here to provide the information you need to choose the Reverse Mortgage payout plan that’s right for you.
Things to know about Reverse Mortgages:
- At the conclusion of a reverse mortgage, the borrower must repay the loan and may have to sell the home or repay the loan from other proceeds
- Charges will be assessed with the loan, including an origination fee, closing costs, mortgage insurance premiums, and servicing fees
- The loan balance grows over time and interest is charged on the outstanding balance
- The borrower remains responsible for property taxes, hazard insurance, and home maintenance, and failure to pay these amounts may result in the loss of the home
- Interest on a reverse mortgage is not tax-deductible until the borrower makes partial or full re-payment
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