|
|
Setting the Record Straight
Reverse Mortgage Misconceptions You May Have Read or Heard
OTHER MISINFORMATION YOU MAY HAVE HEARD:
It's cheaper to move to a smaller house.
Potential borrowers need to analyze their costs carefully before making this assumption. Selling a home and moving can be expensive. The typical real estate commission of 6 percent, combined with moving expenses, can make finding a new home a serious financial undertaking.
If I do a reverse loan, I cannot sell my home.
Since you always retain ownership, you can sell your home at anytime. If you choose to sell your home, you must pay off whatever money you borrowed. The balance of money from the sale after you have paid the reverse mortgage is entirely yours.
My spouse will be forced to pay back the money we borrowed if I die first.
The loan is due only when both original borrowers no longer live in the home.
You will get more money if you wait until you are older.
If age were the only factor, more money would always be available if you wait until you are older. But age is only one of three factors (home value and interest rates are the other two) that determine the amount of money available from a reverse mortgage. Decreasing home values and increasing interest rates can substantially reduce the amount available. It is not possible to know if you will get more or less money if you wait until you are older.
Related Links:
|
|
|
|
