There is a lot of confusion and fear about reverse mortgages; here are my top 5 fear busters. Add your comments and questions below. I look forward to hearing from you!
Reverse Mortgages are Safe
Over ½ million senior Americans have already benefited from reverse mortgages. HECM reverse mortgages are government FHA insured loans and many safeguards are in place to protect seniors from unethical lending practices.
Provides Independence & Dignity
Provides seniors the tax-free cash they may need to purchase the things they need to live more comfortably—without having to depend on their family, truly making the Golden Years, “Golden.”
Does not affect Federal Benefits
Federal benefits such as Social Security and Medicare are generally not affected by a reverse mortgage. For information on State benefits, such as Medicaid, consult appropriate government agencies.
Keep Title to the Home
The senior retains full title to their home. This loan simply creates a lien against their property that is paid off when they no longer occupy the home…similar to a conventional ‘forward’ mortgage.
Many Repayment Options
The senior homeowner will never owe more than the current market value of their home upon repayment of the loan. They can pay the loan off at anytime—and even make monthly payments if they wish, but it isn’t necessary—and all with no prepayment penalty.
When the last-remaining senior passes away, the heirs can simply pay off the reverse mortgage principal plus accrued interest, just as in a traditional ‘forward’ mortgage. If the family wants to keep the home, they can take out a new mortgage or use other assets to pay for it. If no one in the family is interested in keeping the home, it can be sold to repay the loan. Any money left over goes to the estate to be shared according to the seniors’ last wishes.
CRL Hawaii License # MB-1390