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