My Home and My Reverse Mortgage

The security of keeping your home is one of the most important things you can ask for during your retirement years. With a reverse mortgage, you are able to take a portion of the equity in your home and turn it into cash so that you are able to live comfortably in your home. In this article, I discuss all the questions that you may have about your home and your reverse mortgage. In today’s post, I will discuss some of the common questions regarding your home and your reverse mortgage loan.

If you have any further questions, feel free to drop us a line here or call us at 1-888-8486.

Question: If I take out a reverse mortgage, does the bank own my home?

• This is a huge misconception about reverse mortgage loans. Homeowners should be happy to know that if you take out a reverse mortgage, your home still belongs to you and you continue to retain title to the property. A reverse mortgage loan is no different than a traditional mortgage because as long as you continue to retain ownership of the home, you will continue to be responsible for the payments of your home insurance and property taxes.

Question: Will I be forced out of my home?

• No, you will not be forced out of your home if you have a reverse mortgage. A reverse mortgage loan is meant to allow those who are 62 years and older age in place and as long as you continue to follow the conditions of your loan, then you will not be forced out. Borrowers who have reverse mortgages must continue to keep up with payments on their property taxes and home insurance, maintain the home in good condition and they must continue to live on the property as their primary residence. Even if you outlive the loan, as long as you keep up with the conditions of the loan, then you will should not be forced out of your home.

Question: Will the bank take away my home instead of allowing me to leave it to my heirs?

• That is not true, reverse mortgage borrowers are still able to leave their homes to their heirs. If your heirs wants to keep the home, they can work with the bank to finance the reverse mortgage into a standard mortgage. If they are not interested in keeping the home, your heirs can sell the property to pay off the reverse mortgage and they are able to keep the remaining equity. Another option is that if your heirs choose nothing to do with the home, they can turn it into the bank, which will satisfy the loan.

Question: Will I end up paying more than my house is worth?

• No – a reverse mortgage loan is a “non-recourse” loan. That means that the amount that you owe will never exceed the value of your home. With a non-recourse loan, you never have to paying for more than the house is worth.

 

If you are interested in doing a reverse mortgage –  you can speak with a Senior Advisor at 1-888-808-8486 today!

 Read Related Articles:

What Homes Qualify for a Reverse Mortgage? 

Home Maintenance Checklist for Reverse Mortgages

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