Show #400 Airing Sunday, 8/26/07
Many people could use a reverse mortgage to improve their income, pay for home care, or enjoy life more fully. But lots of folks miss out on these benefits due to misinformation. Here to dispel the most common reverse mortgage myths is my legendary law partner, Laurie Steiner.
Myth number one: if you live too long, you'll have to move out of your house.
Answer:With a reverse mortgage, you can choose to receive a monthly payment for the rest of your life. You're getting money, but you don't have to pay anything back, interest or principle, until you move out or die. If your debt grows larger than the value of your home, don't worry. You don't have to move.
Myth #2: your heirs may have to come up with money when you die.
Answer:Another myth. If your debt has grown to be more than the value of your home, the lender cannot ask your estate or your heirs to make up the difference. In most cases, the government pays the difference to the lender.
Myth #3: I have to sell the home to the bank.
Answer:No. You always own the home and retain the title.
Myth #4: I can onlt take monthly payments.
Answer:No, there are a variety of options to tap into your home equity. You can take a lump sum, or you can use a reverse more like a line of credit.
Myth #5: if my spouse goes to a nursing home, the reverse mortgage payments will just go to the nursing home.
Answer:Let's say your husband goes on Medicaid in a nursing home. You may be left without enough income to live on. A reverse mortgage can be used to supplement your income without a penny going to Medicaid or the nursing home.
Myth #6: Income for a reverse mortgage can only be used for limited purposes.
Answer:No. In fact, a reverse mortgage can be used for anything: add to your income, pay medical bills or insurance, cover property taxes, take a vacation. The sky's the limit.
Does a reverse mortgage make sense for you? If you have any questions, give Mark King a call. Mark is a Reverse Mortgage Specialist with Wells Fargo, certified by the State of Ohio to conduct Reverse Mortgage Education. His number is next.
