There are several myths and misconceptions about a Reverse Mortgage loan program that can cloud the judgment of potential borrowers.
Let’s debunk some of these common myths about the Reverse Mortgage program:
• – Myth: “I will lose ownership of my home with a Reverse Mortgage loan.”
• – Fact: With a Reverse Mortgage, you retain ownership and “title” of your home.
• – Myth: “Reverse Mortgages are only for seniors experiencing financial distress.”
• – Fact: Reverse Mortgages can be a valuable tool for supplementing retirement income while improving financial flexibility.
• – Myth: “I won’t qualify for a Reverse Mortgage if I have an existing mortgage on my home.”
• – Fact: It is possible to use a Reverse Mortgage to pay off your existing mortgage, thereby, freeing up cash for other uses.
• – Myth: “I won’t be able to leave my home to my heirs if I have a Reverse Mortgage.”
• – Fact: Heirs have many options including purchasing or refinancing the home to pay off the balance on the Reverse Mortgage; selling the home and collecting remaining proceeds after the balance on the Reverse Mortgage is paid off; or, when appropriate, choosing the Deed-In-Lieu option.
It’s crucial to separate fact from fiction when considering a Reverse Mortgage loan. Please call Michael Pankow, President of Reverse Mortgage Lending at Veterans Mortgage of America, NMLS 220611, at (916) 296-7765 if you have any questions regarding the Reverse Mortgage loan requirements and benefits.
