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If you are a senior or retired individual aged over 62 and are keen on supplementing your retirement income, you may find the concept of reverse mortgage exciting. In order to steer you in the right direction, this blog post aims to debunk three common myths regarding reverse mortgages as well as the reason why the bubble has to be burst.
Myth #1: Reverse Mortgages Are Pricey
Firstly, the most common misconception is that reverse mortgages very expensive and include excessive fees. This is completely untrue. Do note that there are closing costs associated with a reverse mortgage, similar to a conventional mortgage. Reverse mortgage costs vary based on a range of factors, including terms, financial history, location, house size, and assessed value. Don’t let potential fees or closing costs deter you from considering a reverse mortgage.
Myth #2: Kids Inherit The Reverse Mortgage Payments
Contrary to popular belief, children are not responsible for paying off a reverse mortgage after their parents pass away. The estate manager has the option of selling the house or using the proceeds to pay off the reverse mortgage balance. They could also use the money to pay off the balance and continue keeping the home. The point is that a monthly repayment is not something your children will have to deal with. However, remember that it is crucial to have a plan for your estate as well as a proper will, regardless of whether you have a reverse mortgage. Ensure that the attorney you get in touch with has adequate skills in estate law.
Myth #3: The Bank Will Take Over Your House
Lastly, people also believe that by taking a reverse mortgage comes with the risk of the bank owning their house, which is untrue. A reverse mortgage allows you to borrow money using the equity in your home.
The house will continue to be yours. However, a lender could place a lien against it for securing the mortgage loan. If you have any questions about reverse mortgages, don’t hesitate to get in touch with us at info@famiglialand.com or 09164982438. We’d be happy to help.
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Famiglia Land Realty is a trusted real estate agency in the Philippines, dedicated to helping you find the perfect home or investment property. Our team of local experts is committed to providing exceptional service and achieving the best possible results for our clients. We specialize in real estate project selling and assumed properties and are committed to conducting business ethically and transparently. Contact us in the San Jose Del Monte, Marilao, Pandi, and Santa Maria areas to begin your real estate journey with us.
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