EMAIL FRIEND Setting the Record Straight Reverse Mortgage Misconceptions You May Have Read or Heard MISCONCEPTION #5 - YOU CANNOT HAVE AN EXISTING MORTGAGE ON YOUR HOME As long as there is enough equity in the home to pay off any existing mortgage or lien, a homeowner who is at least 62 years old may qualify for a reverse mortgage. While some borrowers get a reverse mortgage to augment their income and start with homes that are paid in full or have loans with very small balances, other borrowers take a reverse mortgage just so they can pay off their existing financing and never make another loan payment for life. In fact, some people bring in cash to close the loan, just to stop having to make mortgage payments for the rest of their lives. Related Links: The lender or bank will take my home We will have nothing to leave our children? When the loan becomes due, the lender will sell my home. There are strict credit and income requirements When the loan comes due you may owe more than the home is worth My Social Security and Medicare benefits will be affected There are restrictions on how the money is used We will have to make monthly payments We will have to pay taxes on the funds received The lender may require immediate repayment A reverse mortgage is similar to a home equity loan Reverse mortgages are predatory It's difficult to qualify for a reverse mortgage Reverse mortgages are prohibitively expensive A reverse mortgage is only for those in desperate need and/or as a last resort Reverse mortgages are not safe Other misrepresentations you may have heard For more information [ PRIVACY POLICY ]     [ TERMS OF USE ]