The Lender Is Going to Take My Home - False - You and your family or your estate retain ownership of your home. The lender does not takes control of the title. The lender's interest is limited to the outstanding loan balance.
My Children Will Be Responsible For Repayment - False - A reverse loan is a "non-recourse" loan. This meas that the lender can only gain statisfaction or repayment of the loan from the proceeds of the sale of the property. Even if the value of your home drops dramatically. The lender can not even use other assets of the estate to satisfy the loan. Why your heirs may not be responsible for the repayment, they will have the option of paying off the loan and keeping the house for themselves.
You Need A Certain Level of Income, Credit, Or Health To Qualify - False - A reverse mortgage has no income, credit, or health requirements to qualify for.
You Must Own Your Home Free and Clear- False - You may have a mortgage or other debt on yourhome. If you do the mortgage or other debt must be paid off with the proceeds of the reverse mortgage. Many people get reverse mortgages to eliminate their debt or other bills, and get rid of those monthly payments.
If I Do A Reverse Mortgage I Will Have Nothing For My Kids - False - You or your estate will retain all the equity that is in excess of what you owe on your home when the loan is paid off. Your home will continue to rise (or possibly fall) in market value regardless of the loan. We can provide you will amortization tables during the discussion process that can show your situation and what may be left for your children after the mortgage is paid off. Talk with your children as well, most would rather see their parents live a better, easier life than have a few extra dollars.
My Social Security, Medicare/Medicaid Benefits Will Decrease - False - Generally the loan proceeds are considered borrowed money and not income. Some programs require that monthly draws be spent and not accumulated. Please consult with a knowledgeable advisor for more information that applies to your specific situation. If you need help in locating a knowledgeable advisor, we will be happy to help you in locating one.
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