Misconception #1: “I could lose my home.”
Truth: As long as you continue to make your property tax and insurance payments, your home belongs to you. Even if the equity is used up during the lifetime of the Reverse Mortgage, your home is yours.
Misconception #2: “I have to own my home ‘free and clear.’”
Truth: If you have a current mortgage, the Reverse program can payoff that lien and still give you cash from your equity.
Misconception #3: “I won’t leave anything to my family.”
Truth: The amount of equity depleted monthly from an average Reverse Mortgage is usually less than the monthly cost of a retirement home, helping you potentially leave more for your family.
Misconception #4: “I can’t afford the closing costs.”
Truth: Closing costs can be rolled into the loan on Reverse Mortgage refinances, resulting in nothing “out of pocket” for you. Closing costs are also very regulated, resulting in comparable fees to “forward” mortgage transactions - so for Reverse Purchases it would cost you roughly the same amount.