Mandatory obligations | Reverse Mortgage Glossary

Mandatory obligations

Existing mortgage payoff and closing costs paid first from HECM proceeds.

Plain English

Existing mortgage payoff and closing costs paid first from HECM proceeds.

Everyday analogy

Think of this as one piece of a loan puzzle. See our complete glossary or what is a reverse mortgage guide for context.

When this is NOT a good fit

Understanding terms does not mean a reverse mortgage is right for you. Review our eligibility and foreclosure guides before deciding.