Reverse Mortgage Myth #1 - The Bank Will Own My Home

Let me assure you that taking out a reverse mortgage doesn't mean surrendering ownership of your cherished home to the bank. Instead, it's a financial tool designed to empower seniors, like you and me, to tap into the equity we've built over the years without relinquishing our rightful ownership.

Here's how it works: when you secure a reverse mortgage, the lender provides you with funds based on the value of your home, your age and current interest rates, without requiring you to make principal and interest payments. While you're still responsible for property taxes, insurance, and upkeep of your home, the loan doesn't become due until you permanently leave the home, whether by selling, moving out, or passing away.

Throughout this time, you remain the proud owner of your home, holding onto the title just as securely as before. The lender merely has a lien against the property, which means they have a claim to repayment once the loan becomes due. However, they don't have any ownership rights or control over the property itself.

In essence, a reverse mortgage is a partnership that allows you to access the wealth you've built in your home while maintaining your independence and ownership. It's a way to unlock financial freedom and security in your golden years without worrying about losing the roof over your head. So rest assured, with a reverse mortgage, your home remains your castle, and the bank is just a supportive ally in your financial journey.