You do not give up ownership of your home
Most people think that getting a reverse mortgage means giving up their home. This is not the case. Borrowers actually retain the title and ownership of the home over the course of the entire loan. This means that borrowers are responsible for paying property taxes and home insurance.
Your kids and heirs do not have to repay the loan
This is simply not true. Reverse mortgages fall into a category of non-recourse loans. This means that if the owner passes away or abandons the house, the house is sold to repay the debt with absolutely no debt liability being left to remaining family members.
There are no credit requirements
Some people think that if you are not low income you cannot qualify for a reverse mortgage, but this is not the case. There are actually no income or credit requirements on reverse mortgages. In fact, many Americans who are well prepared for retirement are opting for reverse mortgages to supplement their investment portfolios.
You can’t get evicted for your age
Some people worry that they might get evicted from their home if they live too long. This is not the case. You cannot get evicted regardless of your age. As long as you follow the rules of your loan, there is nothing that can be done to evict you.
You can use the money from the reverse mortgage however you choose
Some people are under the impression that there are rules about how they can use the funds from their reverse mortgage. This is not the case; it is your money and you can use it as you see fit. You can help pay your children’s expenses, go on a vacation, remodel your home or do whatever else you see fit with you money. There are no restrictions on what you can spend the money on.
Hopefully you have learned a thing or two about reverse mortgages from this brief fact sheet, because there is a lot of misinformation out there to be corrected. To learn more about reverse mortgages and how they can help fund your retirement, call FirstBank Delray Beach today and speak with a Reverse Mortgage Specialist. They will help you understand exactly how a reverse mortgage can fit into your retirement plan and they will walk you through the entire process if a reverse mortgage is in fact a good idea for you.