Reverse mortgages have evolved from a needs-based product to a product many financial planners recommend as an important component of a comprehensive retirement plan.
Below, the myths are separated from the facts.
Myth 1: The bank owns the home.
Fact: The homeowner always maintains title ownership and control of their home, and they have the freedom to decide when and if they’d like to move or sell.
Myth 2: Those with a reverse mortgage will owe more than their house is worth.
Fact: HomEquity Bank’s conservative lending practices allow clients to take a maximum of 55% (33% on average) of the home’s appraised value. In fact, 99% of HomEquity Bank’s clients have equity remaining in the home when the loan is repaid.
Myth 3: Reverse Mortgages are too expensive because the rates are high.
Fact: HomEquity Bank rates are modestly higher than regular mortgages because there are no payments required.
Myth 4: A reverse mortgage is a solution of last resort.
Fact: Many financial professionals recommend a reverse mortgage because it’s a great way to provide financial flexibility. Since it’s tax-free money, it allows retirement savings to last longer.
Think that a reverse mortgage might be the right fit for you? Get your questions answered and start a conversation with Sean today.
Sean Stewart, Mortgage Agent.