Seniors can use reverse mortgages—specifically the Home Equity Conversion Mortgage or HECM (the government-insured reverse mortgage program)—as a valuable financial tool, but many people misunderstand how they work. To clear things up, here are 10 common myths and the facts that explain them
Myth 1: The lender takes ownership of your home.
Fact: You retain ownership and the title to your home. Instead, the lender places a lien on the property, similar to a traditional mortgage, to secure the loan.
Myth 2: You can be forced out of your home if you have a reverse mortgage.
Fact: When you live in the home in Charleston SC as your primary residence, pay property taxes and homeowner’s insurance, and keep the home properly maintained, the lender cannot force you out because of the reverse mortgage. In other words, you stay in your home as long as you meet the loan requirements.