Tag Archives: Myrtle Beach reverse mortgages

Author Sue White Posted on

How a Reverse Mortgage Can Prepare a Married Couple for a Loss of Income

Loss of IncomeFinancial stability is a crucial aspect of retirement planning, and for many married couples, the sudden loss of income due to retirement, disability, or the passing of a spouse can create significant financial stress. A reverse mortgage is one tool that can help mitigate these risks and provide a steady source of income when needed. Understanding how a reverse mortgage works and its benefits can help married couples safeguard their financial future in the event of an income loss.

Understanding Reverse Mortgages

A reverse mortgage is a loan available to homeowners aged 62 or older that allows them to convert a portion of their home equity into cash. Unlike a traditional mortgage, borrowers are not required to make monthly payments. Instead, the loan balance is repaid when the homeowner sells the home, moves out permanently, or passes away. This type of loan can be an effective way to supplement retirement income, particularly when one spouse experiences a loss of income.

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Author Sue White Posted on

Reverse Mortgages: What Are Some of the Most Common Misconceptions?

reverse mortgagesAs much as there is positive feedback, contradictions, or myths about reverse mortgages, misconceptions can also be found. This is not surprising, considering what is involved in this financial program. Basically, it is the acquisition of monthly cash flow in addition to the monthly retirement income received by senior citizens 62 years old and above.

What are some misconceptions of reverse mortgages?

The Bank Owns Your Home

Firstly, there’s the belief that the bank owns your home the moment you avail of the reverse mortgage loan. This is not the case. The truth is your home is yours as long as you remember these three things.

  • First, you are living in it.
  • Second, you are paying your insurance and property taxes.
  • Third, you are maintaining it in good, reasonable living conditions.

Additionally, you can cover those expenses using the monthly cash flow you get from the reverse mortgage.

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Author Sue White Posted on

Reverse Mortgages: Common Myths Debunked

reverse mortgageThere are a lot of misconceptions about the terms associated with reverse mortgages. Even with the recommendations provided by the American Association of Retired Persons (AARP), a lot of seniors still worry. Their concerns come from applying for a reverse mortgage loan. Things become worse when their loved ones or friends say that this type of loan is nothing but bad news. Even though they can’t provide any credible information to back up their claim.

Common Myths About Reverse Mortgages

There are many misconceptions regarding a reverse mortgage. One example is that it tends to result into houses being repossessed from the borrowers. This isn’t true. As a matter of fact, the senior borrower would still own the house that’s under the loan program. This ownership is protected by the lien that’s put on the property, just like other types of mortgages. It will guarantee that the lender will be repaid for the owed amount, getting rid of the threat of having the house repossessed.

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