Reverse Myths - Top Image

Though reverse mortgages have been available since the 1960s, they did not gain in popularity until the 1990s. Their quick uptake in popularity left them sugject to misunderstanding and confusion. This is a snapshot of some myths about reverse mortgages.

Myth-Your lender takes the title to your home.

FACT - You still own your home. The title remains in your name. When your hoe is sold or you move away, the loan must be repaid, but the title is never negotiable.

Myth - Reverse mortgage borrowers owe more than their home is worth.

FACT - The reverse mortgage loan is a non-recourse loan, which means the borrower can never be personally liable for more than the home's value.

Myth - I cannot get a reverse mortgage if I have a mortgage on my home.

FACT - A reverse mortgage can pay off your current mortgage, eliminating any monthly mortgage payment you have. You must remain current on taxes and insurance.

Myth - There are limits on how I can spend the money from my reverse mortgage.

FACT - You can spend your tax-free money from your reverse mortgage any way you would like. The choice is yours.

Myth - My children will be responsible for the repayment of the loan

FACT - If the property is sold to pay off the loan when you pass away or decide to leave the home, there will be no mortgage debt for your family or heirs to repay. The maximum amount owed is the current market value of the house. If your family or heirs wish to keep the home, they will pay the balance in full to the reverse mortgage lender.

Myth - Only low-income seniors get reverse mortgages.

FACT - Seniors from all different income levels decide a reverse mortgage is right for them. For some seniors it is a way to eliminate their monthly mortgage payment and have more financial freedom. For others it is a way to have a financial cushion.

Myth - If I outlive my life expectancy, the lender will evict me.

FACT - You cannot be evicted, as long as you continue to maintain your home and pay the property taxes and insurance fees.

Now that you know the facts, contact us for a free consultation.

303-759-7354

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Universal Lending Corporation was founded over 30 years ago on the principle that our customers deserve individual and specialized attention throughout the mortgage process. This is why we have one of the highest rates of repeat borrowers in the business. Our mortgage professionals embrace our passion for customer care, and educate and empower each potential home buyer throughout the entire process, so they make informed, considerate decisions that ensure their home mortgages fit their budgets ...

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- NMLS: 2996
6775 E. Evans Ave.
Denver, Colorado 80224
Phone: (800) 758-4063
Email: info@ulc.com

 

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