New Reverse Mortgage Product Has Lower Upfront Costs

A new mortgage product is making "reverse" mortgages more affordable. Reverse mortgages typically have high fees, but the new Home Equity Conversion Mortgage (HECM) Saver allows borrowers to get a reverse mortgage with lower upfront costs as long as they are willing to borrow a smaller amount. A reverse mortgage allows homeowners who are at least 62 years old to borrow money on their houses. The homeowner receives a sum of money from the lender, usually a bank, based largely on the value of the home, the age of the borrower, and current interest rates. The loans do not have…

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