There are a lot of misconceptions when it comes to reverse mortgages in Chesapeake. Reverse mortgages may not be for everyone, but they do serve an important role for certain homeowners. It is important to understand the facts surrounding a reverse mortgage.
Here are some common myths debunked:
You can lose your home doing a reverse mortgage
Since you are required to make monthly payments with certain types of reverse mortgages, you will not lose your home. You do have keep current your property taxes and homeowner’s insurance, as well as living in the home as your primary residence. You must also keep your home in good condition.
A reverse mortgage requires me to sign my home over to the government or bank
This is also a big myth. Reverse mortgages in Chesapeake does not require you to transfer title to another institution. Only the interest accrued and the money your lender has paid you while you lived in the home are due should you sell or move. Any proceeds beyond that you or your heirs retain. Should your heirs decide to the keep the property, they simply refinance the amount owed into their name or pay off the amount and own the home outright.
If I die, my children will be liable for the debt of a reverse mortgage
Reverse mortgages in Chesapeake are non-recourse loans. This means the lender cannot require anyone other than you to pay off the loan. As long as you continue to live in your home, no monthly payments are due. Once you stop occupying the home as your principal residence—regardless of the circumstances—the loan then is repaid and the amount owed can never be more than the value of the property. If the home is sold and the amount of the sale is more than the amount owed on the reverse mortgage, that excess money goes to you or your heirs.
The home must have no underlying mortgage debt
In fact, many seniors use the advantages of a reverse mortgage to pay off an existing mortgage so that they no longer have to deal with a monthly mortgage payment. Of course, this requires there to be enough equity in the home to pull out in order to pay off any current mortgage lien. Speak with a mortgage lender who understands reverse mortgages in Chesapeake about this.
Reverse mortgages are meant only for people in distress
Reverse mortgages do help reduce the financial burden by some homeowners so that they can remain in their homes, but this mortgage product can be used as a sophisticated financial tool as well. Having access to the money available from a reverse mortgage is a great way to protect against an uncertain future or finance other investment opportunities.
Take the time to meet with a professional mortgage broker to review the benefits of reverse mortgages in Chesapeake . You may be surprised how powerful reverse mortgages in Chesapeake can be when used correctly.
