Reverse Mortgages Myths and Facts

Posted on

Dec 15, 2016

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Its not every day that one inquires about a reverse mortgage.
Consumers dont have experience with reverse mortgages because unlike forward mortgages they are typically only done once in a homeowners lifetime. For this reason, there is a lot of misinformation

Myth #1 the bank owns my home. This is 100% not true. You retain all ownership to the home. You simply have a mortgage that is different than youre used to. You are not required to make payments, and in some instances, you can receive payments from the bank.

Myth #2 is that you cant leave the home to your heirs. Also 100% not true. When you leave the house through death, retirement community or other reason, the agreement with the lender is to pay the loan back within 12 months. This can be done through selling, or refinancing.

Myth #3- My credit and income are not required to get a reverse mortgage. Minimal income and credit is required to ensure that taxes and association dues can be paid.

Fact- You will never be asked to make a payment EVER on a reverse mortgage if you do 3 things: 1 Live in the property, 2 pay your property taxes yearly, 3 pay your homeowners insurance when it is due.

Fact- If you or your spouse dies the other may live there if they wish if it remains their primary residence.

There are many myths regarding reverse mortgages. It is important to remember that the guidance of a local professional is key when deciding to apply for a reverse mortgage.

Editors Note:. Kevin Mansouri is the owner and operator of Mortgage Solutions LLC based in Salt Lake City Utah. He has originated forward and reverse mortgages for 12 years. He can be reached for inquiries at 801-506-0307 or kevin@better-homeloans.com NMLS 1339429/278321

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