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Reverse Mortgage FAQ’s: Does My Home Belong to the Bank?

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One of the biggest worries about reverse mortgages for many borrowers is the fear that they are handing their homes over to the bank. However, this is a huge misconception about reverse mortgages and fortunately for homeowners with a reverse mortgage, their home still belongs to them.

Will the banks own your home?

A reverse mortgage does not mean that the borrower is signing their home over to the bank or losing title to their home. The home still belongs to the borrower no matter what.

A reverse mortgage loan is a loan that has been created to help seniors continue to age comfortably in their homes, while receiving payments from the lender. With a reverse mortgage, borrowers do not have to worry about paying back the loan or losing their home as long as they continue to live in their home as their permanent residence.

However, borrowers should be well aware of the terms of their reverse mortgage to prevent it from going into early repayment status.

  •  Just like a traditional mortgages, borrowers are still required to make payments on their property taxes, home insurance and other applicable payments.
  •  Borrowers must continue to keep up with the maintenance of their home to FHA’s standard. This is not only for aesthetic, but important for the safety of you and your family living in the home.
  •  Borrowers are required to continue living in the home in question as their primary residence.

To learn more about this great program and how a reverse mortgage can benefit you, contact a Senior Advisor at 1-888-808-8486.

Image courtesy of [vectorolie] / FreeDigitalPhotos.net

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