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Reverse Mortgage
Top 8 Myths on Reverse Mortages
1. I
would be selling my house to the bank
2. My heirs won't inherit anything
3. I might "outlive" the loan
4. I could get forced out of my home
5. Social Security and Medicare will be affected
6. I would have to pay taxes on the reverse mortgage
7. There are big out-of-pocket expenses
8. A reverse mortgage is similar to a home equity loan
1.
I would be selling my house to the bank
FALSE You keep the title to your house. The lender
will add a lien on the property but you will still have complete control
over it.
2.
My heirs won't inherit anything
FALSE Your estate only owes the balance on the reverse
mortgage. The balance is however much you've spent and interest. Let's
say you got a reverse mortgage and owed $50,000 after 5 years. Then
you decided to sell the house for $250,000. The lender gets $50,000
and you get $200,000.
3.
I might "outlive" the loan
FALSE FHA/HUD reverse mortgages are designed specifically
so that you can't outlive the loan. When you get the reverse mortgage,
the lender will charge you 2% to purchase mandatory FHA mortgage insurance.
That insurance guarantees that even if you live to be 100, you can never
owe more than the value of your home and you can never be forced to
leave.
4.
I could get forced out of my home
FALSE FHA/HUD reverse mortgages specifically state
that you can not be forced out of your home.
5.
Social Security and Medicare will be affected
FALSE Money from a reverse mortgage is not considered
income because it is a loan. For this reason, a reverse mortgage does
not lower Social Security and Medicare benefits.
6.
I would have to pay taxes on the reverse mortgage
FALSE You already paid taxes on the money when you
were putting the equity into your home. When you take it out again,
it is not taxable.
7.
There are big out-of-pocket expenses
FALSE All of the costs, whether closing costs or interest,
are financed. That means there are never out-of-pocket expenses at any
point in the reverse mortgage.
8.
A reverse mortgage is similar to a home equity loan
FALSE First, home equity loans may have many requirements
such as high income, low debt, and good credit that a reverse mortgage
does not.
Second, you can "outlive" a home equity loan and end up being
foreclosed on by the bank. This can never happen with a reverse mortgage.
Third, a reverse mortgage usually has significantly lower interest rates.
For more information, please Call us at 1-561-685-6950 or fill the Contact form.
Para informaciones en Espaņol o Portugues, llamenos al 1-561-685-6950 o llene la forma dando click a seguir Forma de Contacto .