Top 5 Reverse Mortgage Myths and Facts
Don't miss out on the benefits of a reverse mortgage
until you've heard the FACTS !
1 The bank will take my home !
NO. You will retain the title and ownership during the life of the loan, as long as you
continue to live in the home, maintain your home and pay your property taxes and
2 You have to own your home free and clear
NO. Actually, many borrowers use the reverse mortgage loan to pay off an existing
mortgage and eliminate monthly mortgage payments.
3 Once loan proceeds are received, you pay taxes on them.
NO. Reverse mortgage loan proceeds are tax-free. Money you receive from refinancing your home, regardless of the type of loan is not taxable. If you are on a low income government subsidy, check with the appropriate agency for any impact on your eligibility.
4 There are restrictions on how the proceeds may be used.
NO. The cash proceeds from the reverse mortgage loan can be used for any reason. Many borrowers use it to supplement their retirement income, delay receiving social security
benefits, pay off debt, pay for medical expenses, remodel their home, or help their children and grandchildren.
5 Only low income seniors need reverse mortgages.
NO. Many affluent senior borrowers with high dollar homes and healthy retirement assets are using reverse mortgage loans as part of their financial and estate planning. We work closely with financial professionals and estate attorneys to protect your estate and enhance your overall quality and enjoyment of life.