No prepayment penalty

On Reverse Mortgages there are no prepayment penalties. Although the loan is not due and payable until the senior permanently moves out of the home, it can be paid-off at any point prior with no additional fees or costs. In addition there is no penalty for canceling the loan. After the loan closes, a senior has up to three days to cancel the transaction, the so-called “right of rescission,” for any reason whatsoever. To cancel, you must notify the lender in writing. Send your letter by certified mail, and ask for a return receipt. That will allow you to document what the lender received and when. Keep copies of your correspondence and any enclosures. After you cancel, the lender has 20 days to return any money you’ve paid up to then for the financing.

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