When You Get a Reverse Mortgage, You Lose the Title to Your Home
You don’t give away ownership of your home when you get a reverse mortgage. Just like any other mortgage, your name remains on the title. Of course, you still have to pay property taxes, insurance, and maintenance expenses to avoid foreclosure.
You Need a Certain Credit Score to Get a Reverse Mortgage
Reverse mortgages do not have a specific credit score target to get access. Although your credit score history will be accessed through Financial Assessment procedures, a strict credit score is needed to qualify.
You Can’t Get a Reverse Mortgage because You Already Have a Mortgage on Your House
Reverse mortgages can eliminate any monthly mortgage payments you currently have. However, homeowners will still keep up to date on property taxes, insurance, and property maintenance to avoid foreclosure.
My Offspring will have to Deal With Paying Back the Loan
The truth is that your offspring have several options they can choose from when it comes to repayment. They can sell the home to pay off the loan and keep any remaining money from the sale.
A second option is, they can purchase the home for the amount owed or 95% of the appraised value, whichever is lower. They also have the option of walking away from the home entirely if they choose to.
Reverse Mortgages are Only for Seniors with a Certain Income Level
A reverse mortgage is not designed for one type of person or situation – it depends on your unique financial situation. The truth is that there are many seniors with varying levels of income that choose to get a reverse a mortgage.
While some people believe that a reverse mortgage is a ‘last mortgage’, there are different reasons why people get these loans.
The Lender will Evict me If I Outlive my Life Expectancy
This is simply not true. The first thing you need to know is that you still own your home with a reverse mortgage. The second thing is that reverse mortgage lenders don’t put any time limit on how long you can stay in your home.
By reading this article, we hope you learned something new that can better help you figure out if a reverse mortgage is right for you.