There are a lot of misconceptions about reverse mortgages out there! There are several very well established lenders that understands how this loan could fit into your purchase.
Read on to learn more about reverse mortgage myths—and the truths that debunks them.
Myth #1: Only people in dire financial straits get reverse mortgages.
Truth: This couldn’t be further from the truth! In fact, many of our clients take out reverse mortgages for financial security in retirement. Others use the money to make home improvements, pay off existing debt, or supplement their income. No matter your reason for taking out a reverse mortgage, know that you’re not alone.
Myth #2: You have to pay back a reverse mortgage as soon as you get it.
Truth: With a reverse mortgage, you don’t have to make monthly payments for as long as you live in your home. The loan becomes due when you permanently move out of your home (for example, if you sell it or pass away).
Myth #3: Reverse mortgages are only available to seniors.
Truth: While seniors are the most common borrowers,reverse mortgages aren’t just for people who are retired. As long as you meet the equity requirements, you can apply for a reverse mortgage regardless of your age.
Myth #4: Reverse mortgages are complicated and difficult to understand.
Truth: The process might seem complex at first blush, but we’re here to help every step of the way. Your lender will walk you through everything involved in getting a reverse mortgage so that there are no surprises. Plus, they have a wide range of resources available on our website—including an FAQ section and glossary of terms—to help answer any questions you may have.
Myth #5: Only people with perfect credit can get a reverse mortgage .
Truth: There is no credit score required to apply for a reverse mortgage! We take many factors into consideration when determining whether or not someone qualifies, and credit scores aren’t one of them.
If you’re considering a reverse mortgage, know that you’ve come to the right place. Retiringtoaz.com can help you with established lenders that can help you decide what the best path is for you to purchase your next home. Contact us today to learn more or get started on your application!