Reverse Mortgage Myths!

Common myths and misconceptions surrounding Reverse Mortgages, let’s clear some things up!

Myth #1: The Bank Owns Your Home: not true! With a Reverse Mortgage, homeowners retain ownership and title of their home just like a traditional mortgage, the lender only has a lien against the property to secure the loan.

Myth #2: You Can Owe More Than Your Home is Worth: not at all! The reality is this is a non-recourse loan, which means the homeowner or their heirs are not reliable for any debt that exceeds the value. If the home is sold for less than the loan balance, the lender absorbs the loan–not the owners or their heirs.

Myth #3: You Must Make Monthly Payments: wrong again! Contrary to popular belief, you are not required to make monthly payments. Instead, homeowners have the option to receive loan proceeds as a lump sum, line of credit or regular payments. This loan is typically repaid when the home is sold, the owners move out or passes away.

Myth #4: Reverse Mortgages Are Only For Desperate Financial Situations: no way! Reverse Mortgages have often been associated with financial distress, but the reality is they can be a valuable tool for retirees seeking to enhance their financial security! Many homeowners use Reverse Mortgages as a strategic component of their retirement planning, allowing them access to their home’s equity while maintaining their quality of life and financial independence.

Meeting with a financial advisor and your Reverse Mortgage lender could be a powerful team to put together and have access to! Call us today to see how we can help you! 206-590-2414