Reverse Mortgages Myths to Stop Believing in 2021?
The reverse mortgage has an interesting reputation. People who have one love it, and yet millions of homeowners in Los Angeles who could take advantage of it have false notions about it.
In this guide, I’ll dispel the top reverse mortgage myths so you too can take advantage of this helpful mortgage program.
Myth #1: You lose ownership of your home
Truth: You still own your home like you do if you have traditional financing. The lender has a lien on your house only for the outstanding mortgage balance. You can’t borrow 100% of the home’s equity, so no, the bank doesn’t own your home – you do.
Myth #2: You have to be broke to get a reverse mortgage
Truth: The opposite is true. Even though you don’t make payments on a reverse mortgage in Los Angeles, you must prove you can afford the home insurance, taxes, and home upkeep. A reverse mortgage isn’t supposed to be your lifeline, it should be a supplement or bonus to your traditional retirement income.
Myth #3: You can’t sell your house if it has a reverse mortgage
Truth: You can sell your house at any time. While it makes more sense to take out a reverse mortgage if you’ll live in it for the long term, there’s no restriction on selling. If you suddenly have to move or decide you don’t want to live there any longer, you can sell the home just like you would any other home.
Myth #4: You must make monthly payments
Truth: The reverse mortgage does not require monthly payments. You must only keep up with your insurance, taxes, HOA dues, and home upkeep. The payments aren’t due until you and your co-borrower move out of the home or pass away. If at least one of you remains in the home, no payments are due.
Myth #5: You can’t have a traditional mortgage balance and get a reverse mortgage
Truth: While the reverse mortgage program is best for borrowers who own their home free and clear, if you only a small amount, you can use your home’s equity to pay it off. You’ll have less cash available to you, but you’ll be able to access your equity based on your age.
Myth #6: My heirs may owe more than the home is worth
Truth: Even if your home value decreases after you take out the reverse mortgage in Los Angeles, you or your heirs will not owe more than the home’s value. It’s a non-recourse loan which means you only have to pay back as much as the market value of the home.
A reverse mortgage is a great way to use your home’s equity without causing any financial stress. It can supplement your retirement income or be an emergency fund to help with the unexpected.
If you’re interested in learning more about the reverse mortgage in Los Angeles, download my free book by visiting www.reversemortgagelive.com. Take advantage of this limited-time offer and see how a reverse mortgage can benefit you!
Have Questions? Just Need More Information? Contact Us Today So We Can Help