Choosing the Right Reverse Mortgage
Home Equity Conversion Mortgages, otherwise known as HECMs or reverse mortgages, are not one-size-fits-all. In this video, our CEO and founder, Scott Gordon, discusses the differences between three types of reverse mortgages. Some of the topics he covers:
- How age, location, and life plans could help you choose the right reverse mortgage
- Other considerations like informing heirs and keeping your financial advisor in the loop
- Accessing equity in a home you plan to remain in through a traditional reverse mortgage
- HECM for Purchase mortgages when you’re ready for a new place to call home
- The many perks of HECM Lines of Credit
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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Great summary!