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My Mortgage Blog

Source: HomeEquity Bank

Reverse mortgages have evolved from a needs-based product to a product many financial planners recommend as an important component of a comprehensive retirement plan. Below are a few common myths and corresponding facts about reverse mortgages.

Myth: The bank owns the home.

Fact: The homeowner always maintains title ownership and control of their home, and they have the freedom to decide when and if they’d like to move or sell.

Myth: Those with a reverse mortgage will owe more than their house is worth.

Fact: HomeEquity Bank’s conservative lending practices allow clients to take a maximum of 55% of the home’s appraised value. In fact, 99% of HomeEquity Bank’s clients have equity remaining in the home when the loan is repaid.

Myth: Reverse mortgages are too expensive because the rates are high.

Fact: HomeEquity Bank rates are modestly higher than regular mortgages because there are no payments required.

Myth: A reverse mortgage is a solution of last resort.

Fact: Many financial professionals recommend a reverse mortgage because it’s a great way to provide financial flexibility. Since it’s tax-free money, it allows retirement savings to last longer.

Myth: The homeowner cannot get a reverse mortgage if they have an existing mortgage.

Fact: For clients that have an existing mortgage, the first step we will take is to pay off your conventional mortgage along with any other secured debt.

With ever changing mortgage rules and a competitive real estate market it is imperative to have a seasoned mortgage consultant to help you navigate your way to financial freedom. I look forward to providing you a no obligation second opinion on your mortgage financing needs.