Are you curious about reverse mortgages but feel overwhelmed by the myths surrounding them? You’re not alone! Let’s break down these misconceptions and get to the truth about reverse mortgages, with the help of George Bain, a trusted reverse mortgage professional at Fairway Independent Mortgage.

Myth #1: I could lose my house and be forced to move.

Fact: As long as you meet the loan terms like living in your home and keeping up with expenses, you won’t be forced to sell or move. George Bain emphasizes that maintaining your home and paying taxes and insurance are essential.

Myth #2: Your home will be taken away when you pass away, and the family loses the right to the property.

Fact: Your family won’t be responsible for paying off the loan if the balance exceeds the home value when you pass away. They can choose to sell the home or refinance it at 95% of the current appraised value.

Myth #3: Your house must be debt-free to qualify for a reverse mortgage.

Fact: You can qualify for a reverse mortgage even if you have existing mortgage debt. The amount you qualify for depends on various factors, including your age, property value, and current interest rates.

Myth #4: The safest thing is a house “free and clear.”

Fact: George Bain points out that a reverse mortgage can unlock your home equity, providing financial flexibility for your family’s benefit, especially in situations like extended nursing home stays or lawsuits.

Myth #5: I will be giving up the deed to my own home, and I will not own it anymore.

Fact: With a reverse mortgage, you retain ownership of your home. As long as you meet certain requirements, you can live in your home for as long as you wish.

Myth #6: A reverse mortgage doesn’t offer anything different from other loans but costs more.

Fact: While a reverse mortgage may have higher costs, it provides unique benefits like no monthly mortgage payments and an increasing line of credit option.

Myth #7: My children could get stuck with a big mortgage if I live too long.

Fact: Reverse mortgages are non-recourse loans, meaning neither you nor your children will be liable for more than the home value, even if it decreases.

Myth #8: A reverse mortgage is a government benefit.

Fact: While FHA guarantees reverse mortgages, they are loans funded by lenders like Fairway Independent Mortgage, not government benefits.

Myth #9: A reverse mortgage loan should only be considered as a loan of last resort.

Fact: Reverse mortgages can be part of a strategic retirement plan, offering financial stability and flexibility for retirees.

Myth #10: To qualify for a reverse mortgage, both spouses need to be 62+.

Fact: In most cases, only one borrower needs to be 62 or older to qualify.

Myth #11: If you don’t qualify for traditional financing, you will not be eligible for a reverse mortgage loan.

Fact: Reverse mortgage loans have different qualification criteria compared to traditional loans, focusing less on income and credit score.

Myth #12: You have limited options of how you can receive and use the proceeds from a reverse mortgage loan.

Fact: There are various ways to receive funds from a reverse mortgage, including a lump sum, line of credit, or fixed monthly advances.

Myth #13: The deeds and notes are unclear.

Fact: George Bain clarifies that reverse mortgage documents may include multiple deeds and notes, but this is standard procedure to ensure clarity and fulfill legal requirements.

In conclusion, reverse mortgages can be a valuable financial tool when understood correctly. George Bain and Fairway Independent Mortgage are dedicated to providing accurate information and dispelling myths to help consumers make informed decisions about their homes and finances. If you’re considering a reverse mortgage, don’t hesitate to reach out to a trusted professional like George Bain for guidance tailored to your needs.