Reverse mortgages, which convert home equity into tax-free cash, available to borrowers
62 years of age and older, have been criticized for their high up-front fees, among other things.
Enter HUD with its new Home Equity Conversion Mortgage Saver (HECM Saver), a low cost, FHA insured, reverse mortgage, that puts, however, tighter limits on amounts that can be borrowed.
“It opens up new options for people to think about in terms of how they tap their equity as a retirement resource,” said Barbara Stucki, vice president of home equity initiatives at the National Council on Aging.
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