Myths and Misconceptions
Many people have learned wrong information about reverse mortgages. This tends to scare people away from a great opportunity to enrich their retirement years. Here are some of the most common myths and misconceptions about reverse mortgages:
1. Will the bank take my house?
NO! - the bank never owns your house - you always retain title. The bank will place a lien on your house for the reverse mortgage, just like they would for a regular mortgage.
2. Will my heirs have to pay too much to pay off the Reverse Mortgage?
NO! - a reverse mortgage is a non-recourse loan. You and/or you heirs will never owe more than what the house is worth, even if house prices decline.
3. I still owe money on a mortgage now, can I get a Reverse Mortgage?
YES! - if you are age 62 or older and depending on how much you owe, you can still get a Reverse Mortgage. We can calculate the amount that you will be eligible for, and let you know if there is enough to pay off that first mortgage and live comfortably.
4. Is the money from a Reverse mortgage considered ‘income’?
NO! - Proceeds from a Reverse Mortgage are not considered income, and therefore do not affect any eligibility programs, including tax breaks.
5. My home is titled in a ‘Life Estate’; can I get a Reverse Mortgage?
YES! - A Life Estate is permissible for Reverse Mortgages, and a great financial planning tool!
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