SIX MYTHS ABOUT REVERSE MORTGAGES

1: The Lender will own your home - FALSE

You and your family or your estate continues to retain ownership of your home at all times that the Reverse Mortgage is in place. The Lender does not take control of the title. The Lender’s interest is limited to the outstanding loan balance, just like a traditional mortgage.

2: Your home must be debt free to qualify for a Reverse Mortgage - FALSE

You may have an existing mortgage and other debts. The existing mortgage will be paid off with the Reverse Mortgage and other debts can be eliminated with the Reverse Mortgage to free-up valuable cash on a monthly basis.

3: You need a certain level of income, good credit or good health to qualify - FALSE

A Reverse Mortgage has no income, credit, or health requirements. This type of loan is used by homeowners from all walks of life to enhance their retirement years.

4: You have to make monthly payments on your Reverse Mortgage - FALSE

There are never any monthly payments. Payment of taxes, insurance and general upkeep of the home are the only responsibilities of the homeowner.

5: When a Reverse Mortgage comes due, the bank sells the home - FALSE

When the loan must be repaid, you or your heirs can either pay the balance due on the Reverse Mortgage and keep the home or sell the home and use the proceeds to pay off the Reverse Mortgage. You or your heirs keep the money left over from the sale of the home, above and beyond the Reverse Mortgage balance.

6: There are restrictions on how the money is used - FALSE

Actually, there are no restrictions. The cash proceeds from the Reverse Mortgage can be used for any purpose. Many seniors have used Reverse Mortgages to travel, pay off debts, help their kids, make luxury purchases or just live comfortably and worry free.

See what the NY Times has to say about REVERSE MORTGAGES