There are a lot of myths about reverse mortgages. Find out the facts below. Contact us to learn more about how a reverse mortgage can benefit you.
Reverse Mortgage Myths vs Facts
Myth: The bank will own my home.
Fact: You are the only one who owns your home. The bank will never be on title.
Myth: If I take out a reverse mortgage my children will not have any inheritance.
Fact: The adjustments made by HUD in October of 2017 limited the amount of home equity that could be accessed depending on the age of the youngest borrower or non-borrowing spouse. Under normal conditions, there will be money for your heirs. Contact us and we can provide an amortization schedule specifically for you.
Myth: My children will be responsible for repaying the loan when I die.
Fact: Your heirs do not inherit any debt. This is a non-recourse loan meaning that you can never owe more that the home is worth.
Myth: A reverse mortgage will require me to make monthly mortgage payments.
Fact: You never have to make a mortgage payment with a revers mortgage. You are responsible for property taxes, homeowner’s insurance, HOA dues (if applicable) and maintaining the home.
Myth: My home must be free-and-clear to do a reverse mortgage.
Fact: Your current mortgage will be paid off first and then you can have access to the remainder of the loan proceeds.
Myth: My home must have a current mortgage on it to do a reverse mortgage.
Fact: If you own your home free-and-clear you will be in an excellent position to access a substantial amount of your housing wealth with a reverse mortgage.
Myth: I won’t be allowed to sell my home if I do a reverse mortgage.
Fact: You may sell at any time, repay the reverse mortgage, and take the rest of the proceeds with you to your next adventure.
Myth: A reverse mortgage is the “loan of last resort.”
Fact: More and more financial planners are recommending that retirees consider integrating a reverse mortgage into their over-all financial plan for retirement. Far from being the “loan of last resort,” a reverse mortgage is now seen as a valuable tool to fund longevity for seniors at any income level.
Myth: Reverse mortgages are not for high value properties.
Fact: Proprietary reverse mortgages begin with properties that are $800,000 and higher and may yield millions of dollars to the homeowner in the multi-million-dollar property range.
Contact us TODAY for more information on your specific situation. We’d love to hear your story and get you the information you need to make an informed decision. We educate; You decide. Call 720-717-5343; 325-356-5343; in TX – 972-345-2718.