Here are some of most common misconceptions about reverse mortgages. You do not have to give up the title of your home – you remain the owner – and you don’t have to own your home outright to qualify for a reverse mortgage. A reverse mortgage is not a loan of last resort for broke or desperate people, but a way for senior homeowners to generate additional cash flow for retirement by unlocking the equity in their homes.
Reverse mortgage rates are not high and, depending on the type of loan, can be similar to traditional mortgage rates. You do not have to make your normal monthly Principal and Interest mortgage payments anymore… and that savings helps to boost cash flow. Your heirs will not be stuck with repaying the loan, because they will have the option to either sell it or refinance and keep it, whichever they prefer. Depending on your home’s appreciation trends, a reverse mortgage can provide equity for kids and a surviving spouse, by your heirs simply choosing to sell the home.