Common Myths around Reverse Mortgage, Debunked!
Reverse Mortgages have been around for as long as forward mortgages, but the regulations around a reverse mortgage have been formalized and improved by the the Home Equity Conversion Mortgage(HECM) program officially starting in 1989 under the administration of the Department of Housing and Urban Development (HUD). You can learn more about the history of Reverse Mortgage here.
Given the changes in Reverse Mortgage over a long period of time, there are many myths about how a Reverse Mortgage works, and concerns that have been addressed by regulations applied to Reverse Mortgage.
Below are the top myths we continue to debunk for consumers and we hope to alleviate your concerns with our knowledge base created for your education to determine if a Reverse Mortgage is right for you!
Top 10 Myths Around Reverse Mortgages
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- Myth – The Bank Owns Your Home with Reverse Mortgage
- Myth – I Can Lose My Home with a Reverse Mortgage
- Myth – Reverse Mortgages are a Scam
- Myth – My Heirs Will Be Left With Debt
- Myth – Nothing Will Be Left For My Children
- Myth – Cannot Get a Reverse Mortgage if You Currently Have a Mortgage
- Myth – Reverse Mortgages are Very Expensive
- Myth – I Will Lose My Medicare or Social Security Benefits with Reverse Mortgage
- Myth – I Have to Sell My Home to Repay a Reverse Mortgage
- Myth – Reverse Mortgages are Last Resort For Financial Troubles