As I share information regarding Reverse Mortgages, I often hear a lot of incorrect information. It is usually shared by people with good intentions, but often they dont know what they don't know. That is why I am trying to educate people as best I can about all aspects (positive and negative) regarding a Reverse Mortgage.
Today I would like to clear up a number of misconceptions about reverse mortgages:
The Bank owns my house.
False. The homeowner retains title to the property and can choose to sell the home at anytime. The homeowner retains all future appreciation in the home.
I must have good income and credit to qualify.
False. A Reverse Mortgage has no income or credit qualifications. The qualifications are that you be at least 62 years of age, the home is your primary residence and that the home has enough equity.
My children will be responsible for repayment of the Reverse Mortgage.
False. The Reverse Mortgage is a non-recourse loan, which means the bank can never come after any person or estate for repayment of the loan. The bank can only receive payment of the loan from the value of the home.
To qualify, my home must be "Free & Clear".
False. You may payoff a mortgage or equity loan with a Reverse Mortgage. In Fact many people get a Reverse Mortgage to payoff their current mortgage to eliminate their monthly payment.
The Reverse Mortgage requires that I make monthly payments.
False. There are never any monthly payments. Payment of taxes, insurance and general upkeep of the home are the only responsibilities of the homeowner.
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.
I hope this clears up some of the myths you have heard about Reverse Mortgages. Please contact me with any other questions and what you have heard about reverse mortgages both their disadvantages and advantages.
Sincerely,
Reverse Mortgage Man
www.moneywise123.com
(866) 800-0280
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