3 Completely False Myths About Reverse Mortgages That Need To Be Debunked

Dated: January 9 2018

Views: 71

3 Completely False Myths About Reverse Mortgages That Need to Be Debunked

3 Completely False Myths About Reverse Mortgages That Need to Be DebunkedAre you a senior or retired individual older than 62 who is looking to supplement their retirement income? If so, you may have heard about a unique financial product known as a reverse mortgage. In today’s blog post we will explore three myths about reverse mortgages and share why they need to be debunked. Let’s get started.

Myth #1: Reverse Mortgages Are Expensive

The first myth we will debunk is that reverse mortgages are costly financial products that are full of fees. In fact, nothing could be further from the truth. It’s true that there are closing costs attached to a reverse mortgage, just like with a traditional mortgage. These costs will vary depending on a wide range of factors, including the terms of the reverse mortgage, your financial history, your home’s location, size, assessed value and more.

If you are interested in a reverse mortgage, don’t let the potential fees or closing costs scare you off.

Myth #2: Children Inherit The Reverse Mortgage Payments

Many people believe that they are saddling their children with a mortgage payment when they take out a reverse mortgage, but this isn’t true. After you (and your spouse, if you have one) move on, whoever is overseeing your estate will have the option to sell your home and use the proceeds to pay off the balance of the reverse mortgage. Alternatively, they may decide to use cash to pay off the balance and keep the home. But your children aren’t going to inherit a monthly repayment.

Keep in mind that having a plan for your estate and a proper will is important, regardless of whether or not you have a reverse mortgage. Be sure to contact an attorney who is skilled in estate law for more information.

Myth #3: The Bank Ends Up Owning Your House

Finally, some believe that the bank will end up owning your home if you take out a reverse mortgage. This isn’t true either. With a reverse mortgage, you are borrowing money against the equity or value that you have built up in your home. You will continue to own the house, but the lender may place a lien against it to secure the mortgage loan.

These are just a few of the many myths about reverse mortgages that you might hear about or read online. When you are ready to learn more about this type of mortgage, get in touch. Our team of mortgage professionals is here and ready to assist you.

For More Info Visit: http://www.bondstreetloans.com

Blog author image

Jessica Rojas

Jessica Rojas is an extremely dedicated and committed real estate agent who has been working in the Real Estate field since 1997. She became a licensed real estate agent in 2009 as a sales associate ....

Want to Advertise on this Site?

Latest Blog Posts

5 Features Home Buyers Are Most Likely To Fight About

When you’re shopping for a property, you probably have a list of must-have features for your dream home. But when you’re shopping for a home with your partner, your list of must

Read More

How Buyers Sellers Can Prepare For An Early Start To The Spring Market

Is January the new April? When it comes to the real estate market, experts say yes. Regardless of whether that famous groundhog sees his shadow, a recent article on CNBC suggests

Read More

9 Unexpected Thoughts That Go Through Your Head After Submitting An Offer On A House

Buying a home is a rite of passage, and there are people who go through the process multiple times throughout their lifetimes. Even if you have a great agent, it can be a stressful process.

Read More

Go To Favorites Selling Your Home Tackle These Issues Before The Inspection

The home inspection is one of the last steps in the home selling process. But if something goes wrong and the home inspector finds issues with your property, it could give buyers reasons to

Read More