Reverse Mortgage Facts - What You Need to Know
There seems to be much confusion today about reverse mortgages,
how they work, and what they can be used for. With more seniors than
ever looking for a way to tap into the equity in their homes, many of
them are looking into a reverse mortgage. However, the process can often
be confusing, and they are vulnerable to false information. Let's take a
moment to clear everything up and establish some facts.
The first reverse mortgage fact is that you have a right to the equity in your home. They say that your home is your largest investment, and the saying is true. If you've paid off your mortgage or only have a small balance left, you have a right to the value in your home.
Many seniors are under the impression that the only time they'll see the benefit of their equity is when the home is sold. While the value will certainly go up in that case, what if they pass away before the house is sold? They never get to see any results from their hard work. A reverse option mortgage allows you to reap the fruit of your many years of labor by releasing the equity in the form of one lump sum, a monthly payment, or a line of credit.
Secondly, the fact is that you can use the money from a reverse option mortgage for anything you want. Many resources, or even lenders, will say that you can only spend the money on certain things that are outlined in a contract. This is certainly not the case! You can use the money for literally anything your heart desires -- a new car, vacation, or you could even donate it all to charity! There really is no limit. The only exception is that, if you are still making payments on a regular mortgage, the money from the reverse mortgage must first be used to pay it off. After that is taken care of, then the money is all yours.
The last, and most important fact is that a reverse mortgage is not free money; it must be repaid. Sadly, many seniors are duped into thinking that they're receiving a grant. The fact is that you or your heirs must repay the mortgage when the time comes.
Hopefully this has dispelled any doubts or false information concerning reverse mortgages. Know the facts, and don't be fooled into believing some sales advertisement!
The first reverse mortgage fact is that you have a right to the equity in your home. They say that your home is your largest investment, and the saying is true. If you've paid off your mortgage or only have a small balance left, you have a right to the value in your home.
Many seniors are under the impression that the only time they'll see the benefit of their equity is when the home is sold. While the value will certainly go up in that case, what if they pass away before the house is sold? They never get to see any results from their hard work. A reverse option mortgage allows you to reap the fruit of your many years of labor by releasing the equity in the form of one lump sum, a monthly payment, or a line of credit.
Secondly, the fact is that you can use the money from a reverse option mortgage for anything you want. Many resources, or even lenders, will say that you can only spend the money on certain things that are outlined in a contract. This is certainly not the case! You can use the money for literally anything your heart desires -- a new car, vacation, or you could even donate it all to charity! There really is no limit. The only exception is that, if you are still making payments on a regular mortgage, the money from the reverse mortgage must first be used to pay it off. After that is taken care of, then the money is all yours.
The last, and most important fact is that a reverse mortgage is not free money; it must be repaid. Sadly, many seniors are duped into thinking that they're receiving a grant. The fact is that you or your heirs must repay the mortgage when the time comes.
Hopefully this has dispelled any doubts or false information concerning reverse mortgages. Know the facts, and don't be fooled into believing some sales advertisement!
Thank you for reading our latest article on the mortgage industry. If you would like to get more reverse mortgage information, then drop by our website at http://www.dailywisdom4u.com and give us a buzz. Your feedback is always welcome.
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