Reverse Mortgages are only for those facing financial difficulty. Reverse Mortgages are another tool homeowners can use to manage their retirement budget, when used correctly. They can add great piece of mind by adding additional income for a secure retirement.
MYTH
My home must be paid off to qualify for a Reverse Mortgage. Many borrowers use a Reverse Mortgage to refinance out of their current traditional mortgage to extinguish the monthly mortgage payment. They must still pay for all property taxes, homeowner’s insurance, HOA dues, and other fees and charges if applicable.
MYTH
The bank takes my house when I pass away. Your heirs will typically sell the home to pay-off the loan balance and keep any remaining equity. The FHA mortgage insurance makes up any shortfall if the home is worth less than the loan balance.
MYTH
There are restrictions on how I can use the loan proceeds money from my Reverse Mortgage. There are no restrictions.
