Reverse Mortgage Misconceptions
Reverse Mortgages get a bad rap and I’m here to debunk the most common misconceptions about this popular and very misunderstood mortgage product.
Common misconception # 1: The bank or lender own your home. Probably the biggest misconception of them all! Just like any other mortgage, the borrower still owns their home and remains on title.
Common misconception # 2: Reverse Mortgages are a loan of last resort. Not true! Reverse Mortgages has been used as a retirement and financial planning tool for many years. It’s not just for the financially strapped but for the borrower seeking to create safe and durable retirement income from their home equity in retirement.
Common misconception # 3: Reverse Mortgages are a scam! Nothing can be further from the truth. The Reverse Mortgage is an FHA loan and one of the most highly regulated mortgage products in the country. There are several safeguards built into the product to protect the borrower.
Common misconception # 4: Reverse Mortgages are expensive. Like most mortgage products, Reverses have costs that vary depending on the borrowers needs. The product was built to protect the borrowers best interests and some of the costs reflect that.
Common misconception # 5: This is a difficult product to market and originate. Over 1 million borrowers have taken out a reverse mortgage. At HTL, we specialize in helping New to Reverse brokers break into the space successfully. Let us train you on how to market, originate and close more reverses. We make it simple.
Don’t let these misconceptions stop you from getting more involved in one of the most financially and emotionally rewarding mortgage products ever created. Contact us now and learn more.