1.) The bank owns my house - No - You the borrower retain ownership to you home throughout the life of the Reverse Mortgage. You the homeowner cannot be forced out of the home as long as the real estate taxes and insurance are paid. The home must also be maintained in reasonable living condition. The homeowner always owns the title to the property.
2.) I must own my home free and clear - A Reverse Mortgage converts home equity into cash. Over 35% of all seniors use a Reverse Mortgage to pay off the current mortgage. You must have sufficient equity in your hme to pay off your mortgage. Call Ron Starling to eliminate your mortgage payment.
3.) I will have to pay income tax on the money - No - The money is income tax free.
4.) When a Reverse Mortgage becomes due, the bank will sell my home - No - The borrower retains title to the property. When it becomes necessary to sell the home the borrower or heirs sell the home or they may refinance the loan to repay the loan. All amounts in excess of the loan payoff go to the homeowner or heirs.
5.) Reverse Mortgages are for seniors in financial trouble - No - Some seniors use a Reverse Mortgages to payoff a mortgage, make needed home repairs, payoff existing bills or just to enjoy retirement more. Sir Thomas Browne said " It is best to live life richly, than to die rich." Enjoy your retirement, let your house pay you.
6.) The borrower could owe more than the house is worth - No - This can not happen. The loan is a non recourse loan. It is structured so that the borrower or his estate can never owe more than the value of the house. FHA insures all Reverse Mortgage loans to keep this from happening. FHA, the Federal Housing Administration and HUD, the U. S. Department of Housing and Urban Development, regulates the Reverse Mortgage industry to safeguard the senior community.
7.) There are restrictions on how I can use the money - No - Actually there are no restrictions. You can use the money for any purpose. Visit the kids, travel, payoff debts or just live life more comfortably.
8.) Reverse Mortgage closing costs are too high. closing costs are high if you base it on the first couple of years. The benefits received are great if you plan to stay in your home. Also you do not make any monthly payments as compared to a Home Equity Line of Credit.
9.) It is cheaper to downsize - If you enjoy the home you live in, it is cheaper to get a Reverse Mortgage than to move. You have real estate commissions when you sell your home and when you buy your new home. There is also no guarantee you will enjoy your new neighborhood. Consider all factors before you sell. Call Ron and to discuss the benefits of a Reverse Mortgage.
10.) The lender receives part of the appreciation in my home - No - All of the increase in value of your home belongs to you.
11.) I will wait until later - I think the question you should ask is, "Can I afford to wait another year when I can payoff my mortgage now or enjoy retirement more today." Call Ron Starling at 352-665-1300 or toll free at 800-490-8360.