Let’s address some of the most common misconceptions or myths about reverse mortgage loans.
Myth #1: You’ll Be Forced Out Of Your Home
The first myth is that reverse mortgage loans will force homeowners out of their homes. As long as the homeowners continue to meet the loan’s obligations, they can continue to live in their homes without fear of eviction.
Myth #2: The Lender Will Own Your Home
The second myth is that the lender will own the homeowner’s home. The homeowner retains the title to their home and that the lender has no interest in owning homes. The only thing that would change the homeowner’s status is their inability to meet the loan’s obligations.
Myth #3 You Must Pay Numerous Out-Of-Pocket Expenses At Closing
The third myth is the notion that homeowners must pay numerous out-of-pocket expenses at the closing. The majority of lender closing costs and fees can be woven into the reverse mortgage loan, similar to traditional mortgages. The only fee that must be paid upfront is for reverse mortgage counseling, which is essential to ensure that homeowners understand all aspects of the loan.
We encourage you to ask questions about reverse mortgage loans and seek advice from mortgage advisers if you are considering this financial tool.
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