Myth #1: Reverse Mortgages Are Expensive
The first myth we will debunk is that reverse mortgages are costly financial products that are full of fees. In fact, nothing could be further from the truth. It’s true that there are closing costs attached to a reverse mortgage, just like with a traditional mortgage. These costs will vary depending on a wide range of factors, including the terms of the reverse mortgage, your financial history, your home’s location, size, assessed value and more.
If you are interested in a reverse mortgage, don’t let the potential fees or closing costs scare you off.
Myth #2: Children Inherit The Reverse Mortgage Payments
Many people believe that they are saddling their children with a mortgage payment when they take out a reverse mortgage, but this isn’t true. After you (and your spouse, if you have one) move on, whoever is overseeing your estate will have the option to sell your home and use the proceeds to pay off the balance of the reverse mortgage. Alternatively, they may decide to use cash to pay off the balance and keep the home. But your children aren’t going to inherit a monthly repayment.
Keep in mind that having a plan for your estate and a proper will is important, regardless of whether or not you have a reverse mortgage. Be sure to contact an attorney who is skilled in estate law for more information.
Myth #3: The Bank Ends Up Owning Your House
Finally, some believe that the bank will end up owning your home if you take out a reverse mortgage. This isn’t true either. With a reverse mortgage, you are borrowing money against the equity or value that you have built up in your home. You will continue to own the house, but the lender may place a lien against it to secure the mortgage loan.
These are just a few of the many myths about reverse mortgages that you might hear about or read online. If you are considering refinancing or selling your home, be sure to contact us at (806) 752-7703 or email us at info@webuyhouseslubbock.com so we can provide you with a Cash Offer on your Lubbock house.
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