Reverse mortgages are flexible lending products that allow seniors to borrow against their home equity for a supplement to their income. This money is available for seniors to use as they wish. But common myths about reverse mortgages sometimes cause homeowners to hold back from taking out these loans despite their benefits. Let’s go over some of these damaging myths.
- Myth: The bank or the government will own my house. No, you will continue to be your home’s only owner(s). The government will not own or take your home, nor will the bank.
- Myth: I will have to leave my house. You will not be forced to leave your house because you took out a reverse mortgage. So long as you stay current on all home maintenance payments as well as any existing mortgage payments, the reverse mortgage will not come due, and you can remain in your home. Many reverse mortgage borrowers stay in their homes for the rest of their lives.
- Myth: My heirs will inherit my reverse mortgage debt. Your heirs will not inherit your reverse mortgage debt. They will have two options:
- 1-Pay off the reverse mortgage and keep the home.
- 2-Sell the home to pay off the reverse mortgage.
- If the amount due exceeds the home’s sale price, they will not owe that overage.
- Myth: I will be foreclosed on with a reverse mortgage. Regulations have tightened compared to in the past. Due to more strictness in the approval process, it is much rarer nowadays for homeowners to be foreclosed on after taking out a reverse mortgage.
Apply for a Reverse Mortgage
To find out more about reverse mortgages or to start the application process, please give us a call at (614) 505-0620. We are based in Columbus, and can help you apply for a reverse mortgage in Columbus or anywhere in OH.