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New reverse mortgage program

1-31-2011 - A new reverse mortgage program is now available that can significantly reduce the up-front costs. The HECM Saver Program slashes upfront mortgage premiums from 2% to just .01% of the property’s value. Of course, there are still other costs associated with a reverse mortgage that must be considered. Also, the new program also does not allow you to borrow as much as with a standard HECM loan.

Reverse mortgages can be a useful method for those 62 and older to generate needed cash. For example, the funds may be used to pay the cost of long-term care insurance. The loan does not need to be repaid until you leave your home or pass away.That said, a reverse mortgage must be approached with great care. Get all the facts. The funds may negatively impact on eligibility for means-tested programs like Medicaid or SSI, so be sure to check with your Certified Elder Law Attorney before taking any steps. Also be sure you deal only with a reputable financial advisor and full disclosure has been made. Click here for a booklet on reverse mortgages from The National Council on Aging.

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