Interest Rates And Mortgage Insurance
Adjustable rates can cause the loan balance to grow at a faster or slower rate.
Government Mortgage Insurance
This is put in place by the FHA to protect you and your heirs by insuring that the amount required for repayment of the loan will never exceed the value of your home when payment is due. If, at that time, the proceeds from the sale of your home are insufficient to pay off the loan balance, the FHA will cover any shortfall. An initial premium will be due upon closing your loan. This payment can be financed as part of your HECM loan proceeds.