In search of the Truth!

Below are Reverse Mortgage facts as separated from the underlying myth for you to review.

Myth: The bank owns the home.

Fact:  You always maintain title ownership and control of your home, along with the freedom to decide when and if you’d like to move or sell.  Live in the home you love.

Myth:  You will owe more than your home is worth when it comes time to sell.

Fact:  There is a NO negative net value or equity guarantee.  Meaning, you will NOT owe more than market value and this is specified in your mortgage commitment with any of the lenders.

Myth: A reverse mortgage is a solution of last resort.

Fact:  A reverse mortgage is a financing option to consider because it’s a great way to provide financial flexibility.  Since it’s tax-free money, it allows a homeowner the option to consider the benefits of a Reverse Mortgage.   The last resort would be to sell your property.

Myth You cannot get a reverse mortgage if you have an existing mortgage.

Fact A reverse mortgage can pay off the existing mortgage and other debts to free up cash flow. 

Myth:  I’m paying interest on the interest that is added on to the amount of money you borrow.

Fact:    Simply NOT true.  Interest for a reverse mortgage is only charged on the INITIAL amount of money that you actually borrow with the lender.   There is absolutely NO compounding of interest.

Myth:   I qualify for $275,000 Reverse Mortgage but I only want $150,000 and I am paying interest of the full amount ($275,000).

Fact:   You are only charged interest on the amount of the actual money borrowed.