Here are 5 of the most common facts and myths that will help you further understand the benefits that a reverse mortgages will bring.
MYTH 1: The reverse mortgage lender owns your home. FACT: In fact, you will continue to be the home’s owner and to hold its deed, the title never changes. There aren’t any penalties when selling, paying off, or refinancing your home.
MYTH 2: Qualification is difficult. FACT: You only need to be 62 years of age an own your own home. You don’t need a lot of credit or a qualifying income for this.
MYTH 3: The fees associated with closing are much higher than they are for other loans. FACT: Actually, the closing costs are very much the same as any other home loan and you will be aware of the fees prior to closing when you receive a Good-Faith Estimate. You can also choose to finance with your reverse mortgage loan. The only other cost involved may be for an appraisal in advance of closing. Often, this is the only fee you will have to pay before closing.
MYTH 4: This will affect your taxes and social security in a negative way. FACT: The earnings you obtain from your reverse mortgage will not become an issue with Social Security benefits or income tax.
MYTH 5: There can be problems with the payment. FACT: You will ONLY be required to pay the loan if you decide to leave the house or if it is sold. If your spouse dies then you will still be able to remain living in the house and vice versa and also the living spouse will continue to receive the exact payment amount each month. If you have any heirs, they will be presented with the opportunity to pay off the loan with any other assets or they can opt to refinance so that all the remaining equity will become theirs. Gather all of the specs, when desiring a reverse mortgage loan. Keep in mind that there are other types of mortgage loan solutions and the right choice only depends on your own unique situation. I can help you decide which loan is right for you.
Dreaming of your retirement years should not include losing your home. However due to today’s declining stock market, higher medical costs and taxes, many retirees face this very problem. This is why it is necessary that you, as a baby boomer considering retirement within the next 10 years, understand reverse mortgages and what one could do for you. A reverse mortgage could make it possible for you to travel, buy a second home or start a new business.
Why Get A Reverse Mortgage? A reverse mortgage has many benefits. Your financial status holds the answers to many of the benefits available with a reverse mortgage. Advantages include: Protect the title to your home No restrictions on how, when or where YOU spend the money No restrictions on when you sell your home You do not repay as long as you remain residing at the home You do not pay taxes on your received cash To simplify it, remember that a reverse mortgage is the opposite, or reverse, of a regular mortgage – the bank pays you to live in your house. The loan has to be repaid when you pass away, or when your home is sold to a new owner. This solution may suit you if you’re retiring in your current home and have equity in that home. Also, another advantage of a reverse mortgage is that you can qualify for a reverse mortgage even if you have no income whatsoever. Why wait? Begin your golden years on the right track!