Let me introduce you to reverse mortgages….
If you are a senior or retired individual aged over 62 and are keen on supplementing your retirement income, you may find the concept of reverse mortgage exciting. In order to steer you in the right direction, this blog post aims to debunk three common misconceptions regarding reverse mortgages as well as the reason why the bubble has to burst.
Myth #1: Reverse Mortgages Are Pricey
Firstly, the most common misconception is that reverse mortgages are very expensive and include excessive fees. This is completely untrue. Do note that there are closing costs associated with a reverse mortgage, similar to a conventional mortgage. The exact price will depend on several parameters, such as the reverse mortgage terms, costs will vary depending on a wide range of factors, including the terms of the reverse mortgage, your specific financial history, where you live, the size of your house, assessed value and so much more.
In case a reverse mortgage is something that you are interested in, do not step away from it due to the potential fees or closing costs.
Myth #2: Kids Inherit The Reverse Mortgage Payments
People are often under the false impression that their children will have to bear the burden of the reverse mortgage after their passing. But the fact is that, after you and your spouse, your estate manager has the option of selling your house and making use of the money obtained to pay off your reverse mortgage’s balance. They could also use the money to pay off the balance and continue to keep the home. The point is that a monthly repayment is not something your children will have to deal with.
However, remember that it is crucial to have a plan for your estate as well as a proper will, regardless of whether you have a reverse mortgage or not. Ensure that the attorney you get in touch with has adequate skills in estate law.
Myth #3: The Bank Will Take Over Your House
Lastly, people also believe that taking a reverse mortgage comes with the risk of the bank owning their house, which is again untrue. When you opt for a reverse mortgage, you essentially borrow money against the equity or value that has been built up in your home. The house will continue to be yours. However, a lender could place a lien against it for securing the mortgage loan.
These are the most common myths associated with reverse mortgages. If this topic interests you and you wish to learn more about it, get in touch with us at info@charissarealty.ca or 1.877.824.2747 and we will be more than happy to assist you with your queries.
At Charissa Realty, we specialize in matching you with your ideal homes, investment properties, lands, commercial sales, residential leases, sale of businesses and all things real estate. Whether you’re looking to buy or looking to sell, the Charissa Realty Team can assist you with all your real estate needs.
Post a comment