4 Reverse Mortgage Myths — Debunked

Reverse mortgages have gotten a bad reputation over the years — often unfairly. Here are four of the most common myths, and the truth behind each one.

Myth 1: The bank owns your home. False. You retain full ownership of your home with a reverse mortgage, just as you do with a traditional mortgage. The lender simply has a lien on the property.

Myth 2: You can be forced out of your home. Also false — as long as you continue to live in the home as your primary residence, pay property taxes, maintain homeowner's insurance, and keep the property in good condition, you cannot be forced to leave.

Myth 3: Your heirs will be stuck with the debt. When the loan becomes due (typically when the last borrower moves out or passes away), heirs can sell the home to repay the loan and keep any remaining equity. They are never personally liable for more than the home's value.

Myth 4: Reverse mortgages are only for desperate people. In reality, many financially savvy seniors use reverse mortgages as a strategic retirement planning tool — to supplement income, delay Social Security, or fund home improvements. If you're 62 or older and want to learn more, call Joseph at 480-773-5379.