Reverse mortgages can be immensely helpful for those aged 62 years or older. They can free up the necessary funds so individuals can live out their retirement on their own terms and worry less about financial issues. While many can benefit from these loans, significant stigmas surround them. These are mostly rooted in misinformation and do not accurately reflect the true nature of reverse mortgages. In today’s blog, Family Home Loan Texas discusses common misconceptions about these loans.
You Do Not Lose The Title
Many people think that with a reverse mortgage, you are ceding ownership of your house to your lender. This is patently false — you keep the title to your home and you can continue living in it for as long as you would like. Moreover, you do not have to pay any money back until you cease residing in the home. While the lender will eventually get their money back, that is not something you need to worry about while you remain in your house.
Your Children Or Heirs Will Still Be Able To Inherit The Home
If you decide to leave your house to your heirs, a reverse mortgage will not affect this. If you pass away without having paid off the loan, it will then fall to your heirs. If they decide to reside in the house, they will need to pay it off. If they want to sell it, the loan (plus interest) will need to be paid back. However, they will never have to pay back more than the loan is worth or more than the value of the property.
You Will Not Have To Pay Taxes On Your Received Funds
A major benefit of this type of loan is that it any money you receive is considered tax-free. While you will still need to continue paying property taxes and general upkeep, any funds you get is tax-free, so you will likely keep much more than you might initially think. When you begin the process of receiving this loan, a qualified, independent professional will walk you through all aspects, so you will know precisely what to expect.
You Will Not Be Forced Out Of Your Home
Being forced to leave your home is one of the biggest misconceptions about these loans. You will never be forced from your house unless you default on your loan, which requires very specific, rare circumstances. Really, the only way this will occur is if you stop paying property taxes, home insurance, or the house stops being your primary residence. Other than these situations, you will be able to stay in your house as long as you would like.
Contact Us To Learn More About Reverse Mortgage Misconceptions
There are myriad persisting myths about reverse mortgages, and we think it is important for you to be fully educated before deciding if this type of loan is right for you. Family Home Loan Texas was founded by loan originator and long-time mortgage professional Rob Bramer. Rob has helped clients secure the loans they need both locally and nationally and can help you get the loan you need to live life on your terms. Call 1-800-990-LEND (5363) to speak with Rob about a reverse mortgage loan.