What are the rules of a reverse mortgage? Reverse Mortgage Rules & Requirements You must…
Reverse Mortgage Myths #1:
The bank or lender owns your home.
Probably the biggest misconception of them all! Just like any other mortgage, the borrower still owns their home and remains on title and has many options. The bank holding your Reverse Mortgage does not control and does not own your home.
Reverse Mortgage Myths #2:
Reverse Mortgages are a loan of last resort.
Not true! Reverse Mortgages has been used as a retirement and financial planning tool for many years. It’s not just for the financially strapped but for the borrower seeking to create safe and durable retirement income from their home equity in retirement. If used properly, reverse mortgages can provide a great benefit not only to the person taking out the loan, but substantially alleviate the financial burden for the whole family.
Reverse Mortgage Myths #3:
Reverse Mortgages are a Scam!
Nothing can be further from the truth. The Reverse Mortgage is an FHA loan and one of most highly regulated mortgage products in the country.
There are several safeguards built into the product to protect the borrower. Getting well educated about the pros and cons of a reverse mortgage is very important to make sure it’s the right fit for the situation.
Don’t let this misconception stop you from getting more involved in one of the most financially and emotionally rewarding mortgage products ever created. Contact us today to get your questions answered and see if a Reverse Mortgage is a smart choice.