inception-app-prod/YWVkYzY2MzYtYzU5Ni00MTI5LTljZjQtYjlhZWI2ZDFmNDIy/logo/2016/01/Logo Word.gif
" Trust is not Given, It's Earned ". Allen & Kate trusted
  • Home
  • Listings Search
  • Blog
  • Agents
  • Idaho Guide
  • Customer Reviews
  • About
inception-app-prod/YWVkYzY2MzYtYzU5Ni00MTI5LTljZjQtYjlhZWI2ZDFmNDIy/logo/2016/01/Logo Word-2.gif
Allen & Kate Pedersen
208-703-3499
pedersenallen@gmail.com
Sign In
Sign Up
inception-app-prod/YWVkYzY2MzYtYzU5Ni00MTI5LTljZjQtYjlhZWI2ZDFmNDIy/logo/2016/01/Logo Word.gif
" Trust is not Given, It's Earned ". Allen & Kate trusted
  • Home
  • Listings Search
  • Blog
  • Agents
  • Idaho Guide
  • Customer Reviews
  • About
inception-app-prod/YWVkYzY2MzYtYzU5Ni00MTI5LTljZjQtYjlhZWI2ZDFmNDIy/logo/2016/01/Logo Word.gif
" Trust is not Given, It's Earned ". Allen & Kate trusted

Most common myths regarding reverse mortgages

Below are the most common myths regarding Reverse
Mortgages “HECM”.


Reverse mortgages are a last resort for seniors who are poor
– although there are certainly some people who fall into this camp, it isn’t
true for all seniors who choose to go with a reverse mortgage. Many choose this
option as part of a comprehensive financial plan for their golden years, not
because they are on the ropes financially.

The lender will own
your home
if you take out a reverse mortgage – the homeowner in fact retains
ownership and the title to their property provided they meet the loan’s
conditions. The home is simply collateral for the money taken through the
reverse mortgage.

Borrowers will end up
owing more than the home is worth
– although this was a common problem with
traditional mortgages following the housing crash of 2008-2009, reverse
mortgages are considered non-recourse loans and are insured by the government.
If the loan balance is higher than the value of the property, the insurance
through HUD will cover the rest.

Children and heirs
will lose their inheritance
– after the borrower passes away, the reverse
mortgage will need to paid back. However, heirs will retain any remaining
equity in the home should they decide to sell. If they decide to keep the home,
they can pay the loan by refinancing into a traditional mortgage.

Homeowners with an
existing mortgage do not qualify
– although the reverse mortgage is supposed to
be the primary lien on the property, a borrower still qualifies for a reverse
mortgage even if they still owe money on the property. They will have to use
part of the proceeds to pay off their mortgage, but this is one reason why many
are attracted to reverse mortgages.

Taking a reverse mortgage means the borrower forfeits their
Medicare, Social Security and pension
– this is probably the biggest whopper of
them all. If you take out a reverse mortgage, you lose all of your other
retirement benefits. If you have Supplemental Security Income (SSI) or
Medicaid, your payments or eligibility may be affected, but any other benefits
will not be.

Have a question?

SEND
Submitting
Oops! Error occurred.

Search listings

Enter city, zip, neighborhood, address…
Loading in progress…
No results found
Type in anything you’re looking for
Search by address:
e.g. 239 Silvelining Lane, Boston
Search by city:
e.g. Dorchester, South End, Beacon Hill
Search by neighborhoods:
e.g. Dorchester, South End, Beacon Hill
Search by zip code:
e.g. 02201, 02128, 02139, 02165
Search by mls id:
e.g. 354153, 366233, 358426, 361614
Search

About me

inception-app-prod/YWVkYzY2MzYtYzU5Ni00MTI5LTljZjQtYjlhZWI2ZDFmNDIy/logo/2016/01/Logo Word-2.gif
Allen & Kate Pedersen
Owners
License #SP43328 & LC37844
208-703-3499
pedersenallen@gmail.com
EHO
Realtor
SRS
EHO
Realtor
SRS
EHO
Realtor
SRS
EHO
Realtor
SRS
inception-app-prod/YWVkYzY2MzYtYzU5Ni00MTI5LTljZjQtYjlhZWI2ZDFmNDIy/logo/2016/01/Logo Word.gif

Office

Pedersen Real Estate Group LLC, Hughes Real Estate Group of Silvercreek Realty Group
Idaho
208-703-3499
pedersenallen@gmail.com

Helpful resources

  • Home
  • Listings Search
  • Blog
  • Agents
  • Idaho Guide
  • Customer Reviews
  • About
  • Marketing Your Home On-Line in Idaho

Consumer Protection & Privacy

  • Accessibility
  • DMCA Compliance
For ADA assistance, please email compliance@placester.com. If you experience difficulty in accessing any part of this website, email us, and we will work with you to provide the information.

© 2021 All rights reserved

Created with Placester

Sign in

Sign in with your email address

Sign In
Forgot your password?
Create an account
You have been successfully logged in
The page will reload automatically.
Go to the homepage
Sorry something went wrong
Login or password are incorrect. Please try again.
Try again

Sign Up

Sign Up
Already a User? Sign In
You have been successfully registered
Please check your email.
Go to the homepage
Sorry something went wrong
Please try again.
Try again

Reset password

Enter your email address

Reset password
Return to Log In
Reset password email has been sent.
Go to the homepage
Sorry something went wrong
Please try again.
Try again

Change password

Change password
Your password has been successfully reseted.
Go to the homepage
Sorry something went wrong
Please try again.
Try again
Send
Success! Your message was sent!
Back to homepage
Oops! Error occurred.
Please try again.
Back to form
Already a User? Sign In

Account verification in progress

Please wait...

Account Verified!

You may now log in into your account
Go to the homepage

Error

Please try again.
Go to the homepage

Share this listing

Copy Link