Are you considering a reverse mortgage but unsure of what's true and what's a myth? Discover the facts and bust the myths about this financial tool!
A reverse mortgage is a loan that allows homeowners who are 62 years of age or older to access the equity in their home in the form of cash. Most reverse mortgages, known as Home Equity Conversion Mortgages (HECMs), are only available through FHA-approved lenders . Reverse mortgage proceeds can be used for a variety of expenses, including long-term care or in-home nursing costs. While there are no required mortgage payments on a reverse mortgage, homeowners are still responsible for paying taxes, insurance, and homeowners association dues. The loan does not need to be repaid until the last surviving borrower permanently leaves the home or passes away, as long as all loan terms are met. The Consumer Financial Protection Bureau has more information on their website . There are several myths surrounding reverse mortgages, including the idea that you can only use a reverse mortgage to pay off a current mortgage if the proceeds are sufficient to do so, that you will lose yo...