Reverse Mortgage Myth Buster #1
Reverse Mortgages often get a bad rap…it may surprise you, but this reputation is mostly undeserved.
A Gov’t insured Reverse Mortgage can be a powerful and flexible tool for a lot of people. Way too many borrowers who would benefit from this unique and impactful loan never take advantage of it due to unfounded fears or misinformation.
Probably the biggest myth or misconception I hear is this: “If a senior homeowner does a Reverse Mortgage then the bank or lender slowly takes over their home…this simply is NOT TRUE…you own your home and you remain on title just as you do with a traditional forward mortgage. You pledge the home as collateral but you remain on title, you own the home and upon your passing the home goes to your estate…and your estate decides what to do with the home just as they would with a regular forward mortgage.
A Reverse Mortgage is a federally regulated program for homeowners, aged 62 or older. It allows for a portion of the equity in your home to pay you rather than you paying for the home. There have been many positive changes since 2013 that not only enhance the program and its effectiveness but also adds additional protections to the senior homeowner.
Don’t underestimate the power of the additional monthly cash flow that a reverse mortgage can create. Simply stated this loan creates more financial peace of mind at a time in your life when you may need it most.