• Helping seniors nationwide
  • Licensed in 42 states
  • Conventional mortgage specialist also available
  • Cash available to you within 2-4 weeks
  • Facing foreclosure?
    Learn how a reverse mortgage can save your home!

National Association of Mortgage Bankers

National Reverse Mortgage Lenders Association

Reverse Mortgage Company
Equity rich? Cash poor? See how a Reverse Mortgage can help!

Reverse Mortgage Myths

There is a lot to learn about Reverse Mortgages before you decide if it is the right option for you. Reverse mortgages are becoming more and more popular for seniors who wish to have a qualitative retirement life with increased financial independence, yet there are quite a few misconceptions. We would like to dispel those myths right now.

Reverse Mortgage Home Equity1.The lender will take my home.
This is the most common misconception. A Reverse Mortgage is secured by a deed of trust or mortgage, much like a traditional mortgage. The lender does not have the authority to take you off title. The Reverse Mortgage loan creates a lien against your property (just like a traditional mortgage) that is paid off when you decide to no longer occupy the home, or when the last surviving borrower passes away.

Reverse Mortgage2.My children will lose their inheritance.
Since the home will always remain in your name you have the opportunity to bequeath the property to whomever you choose. Historically, we know that most homes continue to appreciate over time and a high percentage of houses still have enough equity in the home to pass down as an inheritance. There are many factors that will determine the amount owed once you no longer reside in the home; however neither you nor your heirs will ever owe more than the value of the property. If there is equity remaining, your children will likely elect to refinance and keep the home for themselves or sell the home to pay off the balance owed on the Reverse Mortgage and keep any remaining equity for themselves. If by chance, the amount owed on the Reverse Mortgage exceeds the value of the home, the additional amount is forgiven by the lender.

Supplemental Income for Seniors3.I am going to owe more than what my house is worth.
A Reverse Mortgage is known as a non-recourse loan. This means that you will never have to repay more than what your home is worth, nor will your heirs. Historically, homes have appreciated over the long-term and we expect the same to be true, which would allow equity to remain in the home after the Reverse Mortgage is paid. If the loan balance does exceed the property value, neither you nor your estate will ever be obligated for more than the property value.