By John Krajsa
AFC Reverse Mortgage
A recent article in Reverse Mortgage Daily suggests that new research soon to be released supports the use of the HECM Saver as a financial planning tool. The HECM Saver has substantially lower closing costs than the traditional program and so may be a suitable substitute for a home equity loan as a financial planning tool. We suspect that the fact that monthly mortgage payments are not required, but that there are no penalties if payments are made, is a feature that adds flexibility for planners that is not found in traditional home equity loans. Also, since there are no monthly mortgage payments, no proof of income is needed to qualify. Stay tuned.
