VIP’s Reverse Mortgage team breaks down common myths when it comes to Reverse Mortgage Loans, HECM Loans or H4P Loans.
If I get a reverse mortgage, the bank will own my home.
NOT TRUE - This is just a mortgage loan and you retain ownership for as long as you live. Then your estate determines its fate.
My home must be free and clear to get a reverse mortgage.
NOT TRUE - While you must have equity in your home, we can pay off the current mortgage with the reverse mtg. We do this frequently.
When a reverse mortgage comes due, the bank will sell my home.
NOT TRUE When it comes time for you or your heirs to pay off your loan, it can be paid in full, refinance or sell – it's your choic
Reverse Mortgages are only for desperate seniors who are house rich and cash poor.
NOT TRUE - I personally work with a lot of Financial Planners to increase financial stability in different ways. Many senior are concerned about outliving their assets, using their home equity will help preserve their liquid assets which is critical in our current economic environment.
My Social Security and Medicare benefits will be affected.
NOT TRUE - These are considered loan proceeds and not income, so they do not affect your benefits. It's tax free income.
My heirs wont inherit anything, the bank will take it all.
NOT TRUE Your heirs are entitled to all the equity in your home once the reverse mortgage is paid off.
I might "outlive" my loan.
NOT TRUE - If you live to be 150 years old, you can never be forced out of your home and no mortgage payments are ever due.
I could be forced out of my home.
NOT TRUE - As long as you keep your property taxes and insurance current and live in the home you can never be forced out.
If I live a long time, I could owe more than what the house if worth.
NOT TRUE - There are specific provisions guaranteed by FHA that you can never owe more than what the house is worth.
This loan will cost me a lot of money out of pocket.
NOT TRUE - The cost has been significantly reduced in recent years and the costs are deducted from loan proceeds. You do not pay these out of pocket.
VIP Mortgage has Certified Reverse Mortgage Professionals (CRMP), specializing in helping older borrowers convert a portion of the equity in their home into cash flow. Call Tina Steele today at 520-861-2821 to learn more.