The HECM allows home-owners, ages 62 and better, to convert part of their home equity into tax-free proceeds. There are no required monthly mortgage payments on a HECM but the homeowner must continue to pay for property taxes, insurance and any other required assessments. There is no pre-payment penalty if the consumer ever chooses to pay the loan back in full. Repayment of the loan can never exceed the home’s value and the heir’s will never inherit a debt, unless they choose to retain the home as their own property. The borrower/s always retains title to the home and no repayment is required until the borrower(s) either permanently leaves the home, fails to maintain the property or fails to pay the property taxes and insurance.