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Most reverse home mortgages have variable rates, which are tied to a financial index and change with the market. Variable rate loans tend to give you more choices on how you get your money through the reverse home mortgage. Some reverse home mortgages mostly HECMs offer fixed rates, however they tend to require you to take your loan as a swelling amount at closing.
Interest on reverse home mortgages is not deductible on earnings tax returns until the loan is paid off, either partly or completely. In a reverse home mortgage, you keep the title to your house. That means you are accountable for property taxes, insurance, utilities, fuel, upkeep, and other expenses. And, if you do not pay your real estate tax, keep house owner's insurance coverage, or keep your house, the lender may need you to repay your loan. https://www.ted.com/profiles/23481653 |
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