Starting in April, reverse-mortgage borrowers can no longer access fixed-rate HECM Standard reverse mortgages. Fixed rates will only be available via the HECM Saver loans, which are for smaller amounts. The Department of Housing and Urban Development's reasoning is that borrowers who secure fixed-rate reverse mortgages often find themselves unable to pay the necessary insurance and property taxes to meet the loan's terms, Michael Kitces writes. Consumers "might be better positioned if they proactively used a reverse mortgage earlier, coordinated as part of a broader income/spending plan over time," Kitces writes.

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