Reverse mortgages have gotten a bad reputation over the years, and a lot of it is rooted in myths and misinformation. This is particularly unfortunate because they are actually very helpful for those who qualify. They provide a way to free up necessary funds that can cover major expenses and can help you live your retirement to its fullest — without having to worry about the limitations of a fixed income. In today’s blog, Family Home Loan Texas sets the record straight and discusses the persisting myths that surround these helpful loans.
Myth #1: You Can Lose Your Home
That you can lose your home is one of the prevalent, yet incorrect misconceptions out there. It is particularly nefarious because it is entirely antithetical to the primary benefit of a reverse mortgage. One of the biggest benefits of these loans is that anyone who has one can remain in their home for as long as they want — while still receiving money from the lender. The loan is available to adults who are ages 62 or older and it works by leveraging your home equity to receive cash. You get paid each month, in one lump sum, or abstain a line of credit. While interest does accrue, you don’t have to pay anything back until you move out of your home or it stops being your primary residence. This is a major selling point, so being able to lose your home doesn’t make any sense.
Myth #2: Your Heirs Won’t Inherit Your Home
When you obtain a reverse mortgage, you keep the title to your home, meaning that it is entirely yours and will continue to be until you move out or pass away. You are fully entitled to leave your heirs your house in your will, and they will still receive it. If they want to keep the house they will be responsible for paying the loan back, or if they want to sell the house and use the proceeds to settle the debt, that is entirely doable. If the home has appreciated and there are additional funds from the sale, they are free to keep them and spend them as they please.
Myth 3: It Is A Predatory Loan
All of the misconceptions about reverse mortgages can make it seem like they take advantage of those who could most benefit from the loan. This is false because one of the very first steps of the process consists of a mandatory meeting with an independent counselor who’s approved by the U.S. Department of Housing and Urban Development (HUD). This is to ensure sure that you understand all aspects of the loan and that you have a full grasp of what to expect. It is in both your and the lender’s best interests that you completely understand what this sort of loan consists of and that there are no surprises. You are completely in control throughout the entire process, and you are always given the tools to act in your best interests.
Contact Us To Learn More About Reverse Mortgages
We believe that knowledge is power and that you should make your decisions based on facts rather than myths. If you have any questions, we are here to help. Family Home Loan Texas was founded by loan originator and long-time mortgage professional Rob Bramer. Rob has helped clients secure the loans they need both locally and nationally and can help you get the loan you need to live life on your terms. Call 1-800-990-LEND (5363) to speak with Rob about a reverse mortgage loan and to receive a free, no-commitment consultation.