What are some common misunderstandings about a reverse mortgage?
Myth: My kids won’t like the idea.
Fact: That was true for a long time. That has turned around with experience and education, heirs are more open minded about reverse mortgages. Many kids are championing the idea and are assisting their parents and grandparents with the process.
Myth: The lender gets the house in the end.
Fact: This is the most common misconception. The title remains in the name of the borrower. This is merely a loan against the property, and the lender is only repaid the loan balance.
Myth: The lender will pay my property taxes and home owner’s insurance.
Fact: Wrong!!! You must pay your property taxes and home owner’s insurance. And stay current!