![]() ![]() You will not owe more than the value of your home. ![]() The reverse mortgage should actually REDUCE the fear that this will happen, as periodic draws from home equity should INCREASE a homeowner’s ability to pay property charges. That is true whether you have a reverse mortgage, forward mortgage, or no mortgage at all. If you stop paying your property taxes, you risk losing your home. However, it is possible for ANYONE who owns a home to lose it. Homeowners retain ownership of their homes throughout the life of the loan, and can choose to sell the home at any time without prepayment penalty. This may have been true for some reverse mortgages prior to 1989, but the government-insured reverse mortgage has never allowed the lender to hold title. However, this is still the most common misconception. The bank does not take your home now or when you die. ![]() You keep title and ownership of your home.So, let’s clarify a few items that are commonly misunderstood: The client satisfaction ratings are much higher than with the alternatives. Maybe we have not explained the basics properly to the financial media. Meanwhile, the homeowners themselves have been very happy with their reverse mortgages. While Clark Howard has recently reconsidered his position on them, he and others still don’t tout the financial planning advantages this program offers to older homeowners. From Dave Ramsey to Suze Orman, they have not taken the time to listen to researchers within their own financial planning community who regularly publish papers on the advantages of this financial tool. The money experts on TV and radio have never fully understood Home Equity Conversion Mortgages (HECMs) and the proper use of these reverse mortgages. ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |