Reverse Mortgage FAQs
Reverse Mortgage Myths and Facts
Top Ten Myths of Reverse Mortgages
Myth 1: The bank takes the house or the borrower can lose the house. FALSE- you maintain the title of the home, the loan does not need to be repaid until the borrower moves out for more than 364 days.
Myth 2: The home must be paid off to qualify for a reverse mortgage- Not True!- your current mortgage can be paid off with a new reverse mortgage and NEVER PAY A MORTGAGE PAYMENT AGAIN!
Myth 3: When the reverse mortgage comes due the bank sells the home- FALSE - When you wish to sell or your heirs want to sell- they have the right to that at any time.
Myth 4: It is cheaper to move to a smaller home- UNTRUE- average sales costs are about 6-7%... Remember the old saying: "It's cheaper to keep her"
Myth 5: Taxes on the money you receive needs to be paid- FALSE- it is TAX FREE
Myth 6: The borrower could end up owing more than the home is worth- True, but because they are now insured by FHA- it cannot be collected from your estate!
Myth 2: The home must be paid off to qualify for a reverse mortgage- Not True!- your current mortgage can be paid off with a new reverse mortgage and NEVER PAY A MORTGAGE PAYMENT AGAIN!
Myth 3: When the reverse mortgage comes due the bank sells the home- FALSE - When you wish to sell or your heirs want to sell- they have the right to that at any time.
Myth 4: It is cheaper to move to a smaller home- UNTRUE- average sales costs are about 6-7%... Remember the old saying: "It's cheaper to keep her"
Myth 5: Taxes on the money you receive needs to be paid- FALSE- it is TAX FREE
Myth 6: The borrower could end up owing more than the home is worth- True, but because they are now insured by FHA- it cannot be collected from your estate!
Myth 7: Reverse Mortgages are expensive to set up- NOT WITH RESIDENTIAL FINANCE CORPORATION, we have cut the costs for our seniors to help keep them in their homes as long as possible.
Myth 8: There are restrictions on how the money is used- NOT RIGHT NOW! It is your money and you use it for whatever you wish.
Myth 9: Reverse Mortgages are only for house rich, cash poor seniors- ABSOLUTELY NOT! Many seniors worked their whole lives to pay off their homes to find at retirement that they don't have the resources to enjoy life, so they take the money to supplement their retirement.
Myth 10: Reverse Mortgages are for refinances only- NO... under the program you can use a reverse mortgage to
BUY A SMALLER HOME
or
THE HOME OF YOUR DREAMS
and
NOT HAVE A MORTGAGE
Start enjoying life!
Call for a FREE information DVD or reading packet!
or
THE HOME OF YOUR DREAMS
and
NOT HAVE A MORTGAGE
Start enjoying life!
Call for a FREE information DVD or reading packet!
