Reverse Mortgage Ins and Outs<\/strong><\/p>\n When it comes to home loans you have a choice between a traditional loan or a reverse mortgage, which is also sometimes called a home equity conversion mortgage (HECM). A reverse loan may look appealing at first, but you need to understand exactly how it works before you enter into a legal loan contract. The ins and outs of reverse mortgage agreements are briefly outlined below.<\/p>\n <\/p>\n Closing Costs And Fees do Exist When You Sign a Reverse Mortgage Agreement<\/strong><\/p>\n You may not realize it at first because the fees are \u201chidden\u201d, but reverse mortgages do have closing costs. The reason those fees are not readily apparent is that they are taken off the top from the loan money received, as opposed to paid by you at a later date. You must be cognizant of those fees before signing an agreement with your lender or you may not receive the amount of loan money you initially expected.<\/p>\n Interest costs are also a concern when it comes to these types of home loans. Reverse mortgages do not come with the same monthly repayment obligations of traditional loans. However, since they take longer to pay off, interest has longer to accumulate. As a result, you will wind up paying far more than the initial loan amount in the long run.<\/p>\n <\/p>\n