There are many myths out there regarding Reverse Mortgage. But do people really understand what a REVERSE MORTGAGE is?
Reverse Mortgage is a great strategy to supplement your social security income.
A Few Common Myths Are…
Myth#1 – Everyone on title to the property must be 62 or older.
FALSE. As long as one borrower is 62 or older, the spouse can be less than 62 as long as they are classified as a Non-Borrowing Spouse.
Myth#2 – If the borrower gets a Reverse Mortgage, they cannot sell their home.
FALSE. If the borrower decides to sell their home, a HECM is like any other loan that must be paid off at closing.
Myth#3 – The borrower must make monthly payments for a reverse mortgage.
FALSE. There are no monthly payments required to the lender however the borrower is responsible for payments of all property charges such as taxes, insurance, HOA etc.
Myth#4 – If the lender or servicer changes, the loan terms can change.
FALSE. Once the contract is executed, the terms are defined and cannot be changed by law as long as the mortgages or deeds remain in force.
Let us help you understand how Reverse Mortgages work.
Contact us at 866-750-1199 or email us at mortgage@madisonmanagement.net
Madison Management Services, LLC
NMLS # 185724
Tel.: 866-750-1199
