5 MYTHS & REALITIES of REVERSE MORTGAGES James Graff 732-500-MUTE Adviso...

5 MYTHS & REALITIES of REVERSE MORTGAGES HECM Home Equity Conversion Mortgage FHA James Graff

James Graff 732 500 MUTE Advisors Mortgage Group, L.L.C. NMLS#33041 As with many financial products, reverse mortgage loans can be complicated and there are often misconceptions about how the product works. Do you know the myths vs. realities?

MYTH No. 1: The lender owns the home.

You will retain the title and ownership during the life of the loan, and you can sell your home at any time. The loan will not become due as long as you continue to meet loan obligations such as living in the home, maintaining the home according to the Federal Housing Administration (FHA) requirements, and paying property taxes and homeowners insurance.

MYTH No. 2: The Home must be free and clear of any existing mortgages.

Actually, many borrowers use the reverse mortgage loan to pay off an existing mortgage and eliminate monthly mortgage payments (same loan obligations mentioned above such as living in the home, maintaining the home according to the Federal Housing Administration (FHA) requirements, and paying property taxes and homeowners insurance.)

MYTH No.3 Once loan proceeds are received, you pay taxes on them.

Reverse mortgage loan proceeds are tax-free as it is not considered income. However, is is recommended that you consult your financial advisor and appropriate government agencies for any effect on taxes or government benefits.

MYTH No. 4: The borrower is restricted on how to use the loan proceeds.

Once any existing mortgage or lien has been paid off, the net loan proceeds from your HECM loan can be sued for any reason. Many borrowers use it to supplement their retirement income, defer receiving Social Security benefits, pay off debt, pay for medical expenses, remodel their home, or help their adult children. You worked hard for this asset and prudence, along with budgeting, should be the proper approach to enjoying proceeds received from your HECM (reverse mortgage) loan.

MYTH No. 5: Only poor people need reverse mortgages.

The perception of the reverse mortgage as an assist for the "poor" borrower is changing - many affluent senior borrowers with multi-million dollar homes and healthy retirement assets are using reverse mortgage loans as part of their financial and estate planning, and are working closely in conjunction with financial professionals and estate attorneys to enhance the overall quality and enjoyment of life.





HOME LOANS James Graff 732-500-MUTE
Advisors Mortgage Group, L.L.C. NMLS#33041
2899 Highway 35 North Hazlet N.J. 07730
In 34 states of The United States of America

Cash out refinance, debt consolidation, renovation loan, reverse mortgage, pre-qualify, pre-approval letter, FHA VA USDA HELOC HECM Fannie Mae Freddie Mac...