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HECMs Aren't for Everybody

As you know, we are big fans of the benefits and improved quality of life that a reverse mortgage can provide for seniors. So, are reverse mortgages a panacea, the answer for all senior cash flow problems?

No. Although the HECM Reverse Mortgage is a remarkably flexible financial tool, no single financial product is a one-size-fits-all solution. After going through the education process, some potential borrowers discover that a HECM loan does not fit their unique life situation.

4 Reasons a HECM Loan Might Not be Right

  1. The HECM loan proceeds are insufficient to retire the current mortgage, and the borrowers do not have enough cash resources to cover the short to close amount.

  2. The house you are in should be the home you plan to grow old in. Now, we all know how the best laid plans of mice and men can be altered, but if you plan on moving from your current home, obtaining a reverse mortgage now might limit your options in the future.

  3. It is important that the property stay in the family. When the loan becomes due, the home will have to be sold if family members cannot raise the money to pay off the HECM lien.

  4. After the HECM is in place, the borrowers will still have insufficient cash flow to pay living expenses, property taxes and homeowners insurance.
These should be considered as guidelines. Every scenario is unique and there are exceptions to every rule.



Education is the key to answering the question:
"Is a Reverse Mortgage Right for Me?"
QUESTIONS?
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Home
HECM Basics
12 Facts
Borrower Qualifications
The Loan Process
Financial Assessment
Who Owns the Home?
Who Owns the Equity?
When is the Loan Due?
A Non-Recourse Loan
It's Your Money
HECM for Purchase

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First Federal
Savings Bank
NMLS 402963
1880 S Eagle Rd
Meridian, ID 83642

dcook@bankfirstfed.com
National Reverse Mortgage Lenders Association Logo

Home | HECM Basics | 12 Facts | Borrower Qualifications | Loan Process | Financial Assessment
Who Owns the Home? | Who Owns the Equity? | When is the Loan Due? | A Non-Recourse Loan | It's Your Money
| HECM for Purchase |
Copyright© 2021 Doug Cook FDIC & Equal Housing Lender Logo
HECM borrowers are responsible for the payment of property taxes, homeowners insurance, and the maintenance of their home. Rates and fees vary by lender. All credit products subject to approval. Information presented was not created or approved by HUD/FHA.
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First Federal Savings Bank | 1880 S Eagle Rd | Meridian, ID 83642
Institution NMLS: 402963

www.MortgageFirstFed.com/dcook
www.BankFirstFed.com

First Federal Savings Bank provides HECM Reverse Mortgage lending in the states of
Idaho, Oregon, Washington, Montana, Wyoming, Utah and Nevada.
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