Reverse Mortgages are intimidating to most people. Not because they are actually overly complicated, but because there are many misconceptions about Reverse Mortgages that continue to perpetuate. Today, we are going to dispel 5 common myths about Reverse Mortgages you need to know so they aren’t so intimidating.
Myth #1 Reverse Mortgages are only for people who have no other options.
Many people think that they can only apply for a Reverse Mortgage if they have run out of other financial options. However, most people who apply for Reverse Mortgages and are approved actually have an abundance of other financial options, but choose a Reverse Mortgage because it offers a great deal of flexibility. It also provides for tax-free cash without creating a monthly payment.
Myth #2 If I get a Reverse Mortgage, I can never sell my home.
It is true that in order to have a Reverse Mortgage, you have to live in your home. However, you still own your home and can move or sell at any time. You simply have to sell your home and pay off the balance of your Reverse Mortgage before doing anything else.
Myth #3 By doing a Reverse Mortgage, I give up ownership of my home.
Rest assured, you allows own your home when you do a Reverse Mortgage. With a Reverse Mortgage, you are simply taking a loan out for the amount of equity you have in the home.
Myth #4 Reverse mortgages are too expensive.
Although there are fees associated with a Reverse Mortgage, many homeowners find they are comparable to the closing costs of a traditional mortgage. Furthermore, homeowners who take a Reverse Mortgage believe the fees are worth the benefits they receive from the loan.
Myth #5 If I don’t pay off my Reverse Mortgage, my kids will have to.
Don’t worry! Taking out a Reverse Mortgage doesn’t mean you are leaving your kids with your debt. If you pass before the balance of the Reverse Mortgage is paid in full, it will be repaid by the proceeds from the sale of your home. And, if the proceeds are not enough, your children are not responsible for the balance. The government guarantees this protection to you and your heirs.
Now that you understand the facts about the Reverse Mortgage, it’s time to talk to your financial advisor or a representative from Reverse Mortgage Answers to get you on the track to a happy retirement!