Are you a senior or retired individual older than 62 who is looking to supplement their retirement income? If so, you may have heard about a unique financial product known as a reverse mortgage. In today’s blog post, brought to you by Eight-Five Property Ventures, we will explore three common myths about reverse mortgages and share why they need to be debunked. Let’s get started unraveling these reverse mortgage myths.
3 Reverse Mortgage Myths
Myth #1: Reverse Mortgages Are Expensive
The first myth we will debunk is that reverse mortgages are costly financial products that are full of fees. In fact, nothing could be further from the truth. It’s true that there are closing costs attached to a reverse mortgage, just like with a traditional mortgage. These costs will vary depending on a wide range of factors, including the terms of the reverse mortgage, your financial history, your home’s location, size, assessed value, and more. Despite common reverse mortgage myths, understanding the facts can help you make informed decisions about your financial future.
If you are interested in a reverse mortgage, don’t let the potential fees or closing costs scare you off.
Myth #2: Children Inherit The Reverse Mortgage Payments
Many people believe that they are saddling their children with a mortgage payment when they take out a reverse mortgage, but this isn’t true. After you (and your spouse, if you have one) move on, whoever is overseeing your estate will have the option to sell your home and use the proceeds to pay off the balance of the reverse mortgage. Alternatively, they may decide to use cash to pay off the balance and keep the home. But your children aren’t going to inherit a monthly repayment, debunking common reverse mortgage myths.
Keep in mind that having a plan for your estate and a proper will is important, regardless of whether or not you have a reverse mortgage. Be sure to contact an attorney who is skilled in estate law for more information.
Reverse Mortgage Myths: Myth #3 – Your House Becomes Property of the Bank
Finally, let’s debunk some reverse mortgage myths. Some believe that the bank will end up owning your home if you take out a reverse mortgage. This isn’t true either. With a reverse mortgage, you are borrowing money against the equity or value that you have built up in your home. You will continue to own the house, but the lender may place a lien against it to secure the mortgage loan. It’s essential to understand the facts and dispel any misconceptions surrounding reverse mortgages.
These are just a few of the many myths about reverse mortgages that you might hear about or read online. If you are considering refinancing or selling your home, be sure to contact us at (877) 522-3747 or email us at marketing@85pvllc.com so we can provide you with a Cash Offer on your Nevada house.
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