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MYTH vs. FACT

myth

With a Reverse Mortgage, you are selling your house to the bank

fact

You never give up ownership of your home and remain on title

myth

Reverse Mortgages are expensive

fact

Rates are comparable to conventional FHA rates with fees varying by lender

myth

When loan balance is larger than value of the home, the borrower pays the difference

fact

Reverse Mortgages are non-recourse loans, meaning the borrower or estate will never owe more than the current home value

myth

You must own your home free and clear to qualify for a Reverse Mortgage

fact

Many borrowers use loan proceeds to pay off their existing mortgages 

myth

If I pass the lender takes the home and my heirs receive nothing

fact

Heirs have many options including sell, buy, or refinance. Timeline and restrictions do apply but most importantly heirs have rights and protections.

myth

Reverse Mortgages are for borrowers who have no other options

fact

Reverse Mortgages can be used as a sophisticated financial tool by financial advisors, CPAs, divorce attorneys, etc. Reverse Mortgages can serve as an insurance policy for many expenses facing seniors.

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