Myths about Reverse Mortgages
The lender will own your home - FALSE!
You and your family or your estate continues to retain ownership of your home. The Lender does not take control of the title. The lender's interest is limited to the outstanding loan balance.
Reverse Mortgage lenders just want to sell your house - FALSE!
Our lenders are in the business of helping you keep your home and meet whatever financial needs you may have in order to help you maintain financial independence. Reverse Mortgage borrowers may remain in the home for as long as they wish. However, should they decide to sell the home for any reason, the loan would then become due and payable.
Your heirs will be saddled with the loan - FALSE!
The Reverse Mortgage is a non-recourse loan. This means that the lender can only derive repayment of the loan from the proceeds of the sale of the property.
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.
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.
Your home must be debt free to qualify for a Reverse Mortgage - FALSE!
You may have a mortgage or other debt on your home. The mortgage or debt however, must be paid off first with the proceeds of the reverse mortgage.
Only the "cash poor" or desperate senior citizens can benefit from the Reverse Mortgage - FALSE!
Even though some seniors may have a greater need than others for the cash or monthly income, the Reverse Mortgage can also be an excellent financial or estate planning tool.