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Myths & Facts About Reverse Mortgage

When exploring reverse mortgage options, you might have come across various rumors and myths about them. You might be unsure because of something you have heard somewhere. There are lots of rumors bottling up, but Weber Mortgage wants you to make an informed decision. Thus, we have arranged some common misconceptions about reverse mortgages that may help homeowners take a wiser decision.

Common Reverse Mortgage Myths & Facts

Myths & Facts About Reverse Mortgage

Myth #1: You Lose the Title to Your Home

FACT - False. In a reverse mortgage situation, you remain the original owner of the home, considering you are meeting.

Myth #2: the Borrower Owes More Money Than the Home’s Worth

FACT - All our reverse mortgages are non-recourse loans, meaning you will never owe more than what the home is worth.

Myth #3: You Need to Make Monthly Mortgage Payments

FACT - Plain false. You are not required to make monthly payments. In fact, the proceeds of a reverse mortgage are used to pay off the existing home loan.

Myth #4: My Children Will Be Held Responsible for the Repayment of the Loan

FACT - Also false. The obligation of the outstanding home loan is attached to the house, not the deceased client’s estate. Furthermore, once the home is sold, your heir will not be responsible for any difference between the loan balance and the home’s value.

Myth #5: My Heir Cannot Own the Home

FACT -  It’s true that typically, proceeds from the sale of the home are used to pay off the reverse mortgage—but your heirs do have the option to arrange to repay the loan and buy the home if they wish to keep it in the family.

Myth #6: I Won’t Be Able to Sell My Home

FACT - False again. Just like any other loan, you will be able to sell your home. In that case, the reverse mortgage will be paid off at closing.

Myth #7: I Will Have to Face Prepayment Penalties for Selling the Home

FACT - Not true. There are no prepayment penalties for homeowners paying off or selling the home in advance.

Myth #8: My Spouse Will Be Kicked Out If I Pass Away

FACT - False. The Department of Housing and Urban Development has put additional protections in place to keep this from happening.

Myth #9: I Can’t Qualify Because My Home Isn’t Paid Off

FACT - As long as you’ve built up enough equity in your home, you are eligible for a reverse mortgage loan.

Connect With Weber Mortgage for a Secure Reverse Mortgage Loan

There will always be rumors in the air about reverse mortgage loans. However, our friendly professionals can comprehensively guide you through the process and terms so that you are well-educated and aware of the details. We will be more than glad to answer your questions. Give us a call at 205-751-8583 or contact us online for more information.