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Reverse Mortgage Myths

There are many misconceptions that swirl around reverse mortgages.

These loans allow older homeowners to tap into the value of their home and use the money however they choose.

However, many people believe that their lender owns their home and they are in danger of losing it after they sign up for a reverse mortgage. That’s not true. The money simply must be paid back when the home is sold or the owner no longer lives in the property.

Another myth is that the homeowners’ heirs won’t be able to inherit the home. While they must repay the debt, they can then choose to keep the property or sell it.

Another common misconception is that the homeowner won’t be able to sell their home if they get a reverse mortgage. In fact, they can sell at any time. They just need to repay their loan.

“It is a loan just like any other,” said Lorraine Geraci, reverse talent and development manager at New American Funding.