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Everything I Know About Reverse Mortgage is Wrong?

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  • Written by: Guest Writer
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Does the vast world of mortgages, home loan and realty feel intimidating or confusing? Well, Dave of About Redlands Realty & Home Loan is here to help debunk some of those common myths.

MYTH #1:

When you do a Reverse mortgage, you are selling your home to the bank.

A: Not quite. Actually a Reverse mortgage is a regular "Non-Recourse" Government loan that means you can't owe more than the home is worth. The mortgage insurance pays the difference in some wild scenario that may occur. Also, the Property simply has a lien, just like any other traditional mortgage.

MYTH #2:

When you pass, your heirs are left with nothing.

A: Actually they are left owning the home and simply need to repay the loan balance. They can sell the house, pay off the loan and keep what's left or refinance it.

MYTH #3:

All a reverse mortgage does is eliminate a mortgage payment and nothing else.

A: YOU choose, Take a lump sum now and more in 12 months or receive lifetime payments. Or take nothing and watch the Equity line grow that you can draw on anytime.

MYTH #4:

My spouse is younger, they will be forced from the home when I pass.

A: No, a borrowing and non-borrowing spouse can not be evicted once you pass. They remain in the home until they depart.

MYTH #5:

A Reverse mortgage is expensive!

A: I use to think that until I saw the peace of mind this loan creates in clients at closing!

Requirements:

  • 62+ yrs of age
  • Primary Residence that they own.
  • Counseling required
  • Simple financial statement
  • No Payments
  • No Fico requirements
  • No Debt to income limits
  • No Reserves Required
  • Borrower is responsible for paying annual Tax & Insurance and maintaining the home.''

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Dave, About Redlands Realty

Phone: (909) 376-8399 call or text

#01329707, NMLS #1845543

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