MYTH: I am not eligible if I already have a mortgage.
FACT: The most common reason for reverse mortgages are to pay off home loans.
MYTH: If I get a reverse mortgage, the lender owns my home.
FACT: Homeowners still retain title to their homes. It is simply used as collateral for the loan, just like any mortgage. The homeowner can sell and move anytime.
MYTH: Only low-income homeowners get reverse mortgages.
FACT: A growing number of people who have no immediate need, take out a reverse mortgage without accessing the funds immediately. They then let the available funds grow at a much higher rate than available with bank CD’s. This becomes a cushion for an uncertain financial future.