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Stephanie Tourtellotte

5 Reverse Mortgage Myths

Thursday, November 20, 2014 - Article by: Stephanie Tourtellotte - Sterner Homes - Message

What are the 5 top myths about reverse mortgages? Let's address the facts today!

Myth #1: The reverse mortgage lender can kick me out of my house.

Fact:The reverse mortgage lender cannot kick you out of your house as long as you pay your property taxes and homeowners insurance.

Myth #2: I no longer own my home, the bank owns it.

Fact:A reverse mortgage is like any other mortgage loan in that the lender is a lien holder until they are paid off.Like all other loans the borrower retains possession of the properties title.

Myth #3: A reverse mortgage can be outlived.

Fact:As long as one of the homeowners continues to live in the home as their primary residence, pays their taxes and insurance the loan will not become due.

Myth #4:There are requirements for how the loan proceeds can be used.

Fact:There are no rules that tell you how or where you can spend the money you receive. Those decisions are entirely up to you.

Myth #5: Reverse mortgages should only be used as a last resort.

Fact:It's not a good idea to make a financial decision under stress. Waiting until a small issue becomes a big problem reduces your options.

If you are considering a reverse mortgage give us a call at (951) 452-9113 and we will provide you with options in clear and simple terms.

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