What are the only fees a senior citizen must pay when they have a HECM loan?

When considering the fees that a senior citizen must pay when they have a Home Equity Conversion Mortgage (HECM) loan, it is essential to understand the nature of the HECM program, which is designed to assist older homeowners in accessing the equity in their homes without the need to make monthly mortgage payments.

The fees associated with a HECM loan are generally limited to ongoing costs that are essential for maintaining the property and the loan itself. Taxes and insurance are critical because they ensure that the property remains protected to safeguard the lender's investment and the borrower's equity. Failure to pay property taxes can lead to foreclosure, and not maintaining homeowner's insurance exposes both the borrower and lender to significant risks.

Other costs, such as mortgage interest and specific loan processing fees, are associated with the nature of the loan itself and are typically considered part of the loan structure rather than ongoing costs that the borrower must directly pay as part of maintaining their HECM.

Therefore, emphasizing that taxes and insurance are the fundamental expenses that seniors must manage highlights the essential responsibility of maintaining the property and securing the loan, which aligns with the intent of the HECM program to support seniors financially while ensuring the longevity of the mortgage.