The Mortgage Outlet has discovered that there a lot of misinformation and mortgage myths about Reverse Mortgages in BABYLON New York. A reverse mortgage is a home equity loan which allows homeowners 62 years or older to convert some of their home-equity into tax-free income without having to make any repayments on any part of the loan as long as they will continue to live in the home. The tax-free proceeds from a reverse mortgage can be used for any purposes. Reverse Mortgages were created to enhance the lifestyle of the borrower for the rest of their life.
Myth # 1: The Bank will own my home.
Fact: Your title will not change until you sell your home and you will maintain ownership of your property. The lender will place a lien against your property just like a regular mortgage.
Myth # 2: With a reverse mortgage, I can lose my home.
Fact: Your home can never be foreclosed upon for not making mortgage payments as not payments are required.
Myth # 3: In order to get a reverse mortgage, there cannot be any mortgage/liens on my property.
Fact: As long as you have enough equity in your home base on your age and the appraised value, you should qualify for a reverse mortgage as long as you are 62 years or older.
Myth# 4: When the reverse mortgage loan becomes due, the bank will sell my home.
Fact: You will always retain ownership of your home. The loan is due when all borrowers no longer live in the home or the home has been sold. At no time does the bank have the right to sell your home.
Myth # 5: A homeowner could end up owing more than what the house is worth.
Fact: The Mortgage Insurance Premium (MIP) that you pay upfront and on a monthly basis guarantees that the FHA will make any payments above what the home is sold for with a non-related sale.
Myth # 6: Reverse mortgage proceeds can affect social Security or Medicare benefits.
Fact: A reverse mortgage will generally not affect a homeowner’s Social Security payment or Medicare benefits.
Myth#7: There are restrictions on how the money is used from a reverse mortgage.
Fact: There are absolutely no restrictions on how the money can be used from a reverse mortgage.
Myth 8: The Proceeds from a reverse mortgage are taxable.
Fact: The proceeds form a reverse mortgage are tax-free as the funds used are equity in the home that you own.
Myth 9: This is a program only for those in need.
Fact: A reverse mortgage is a fantastic financial planning tool used by homeowners both rich and poor as a way of enhancing their retirement years.
Myth 10: I must have good income and credit scores to qualify for a reverse mortgage.
Fact: There are no requirements for income or credit scores. The only requirement is that you must be 62 years or older and live in the house as your primary residence.
I hope that I have been able to clear up any misconceptions you might have regarding myths for Reverse Mortgage in BABYLON, New York. Should you have any questions please feel free to Contact me.
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