Common Myths and Misconceptions About Reverse Mortgages

"The lender can take my home!"

Not True. Home ownership is never given up. A reverse mortgage is a lien like any other mortgage.

"I can lose the house and be forced out of my home!"

Not True. The homeowner(s) can remain in the home as long as they want.

"I (or my heirs) could owe more than the value of the house!"

Not True. The loan payoff balance can never exceed the net sale proceeds if and when the house is sold.

"The lender will take some, or all, of my home's future appreciation!"

Not True. The home owner retains full ownership of the property including any future increase in property value.

"My children (heirs) will not want the equity reduced!"

Not Likely. Actually, the records show that the great majority family members support and encourage using the financial support a reverse mortgage can provide.

"I will lose my Social Security or Medicare benefits!"

Not True. A reverse mortgage does not affect your Social Security or Medicare benefits. However, it could affect your eligibility for Medicaid or some state assistance programs, so check this out beforehand.