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In a reverse mortgage (sometimes called a home equity conversion loan), borrowers of a certain age may use home equity for anything they need without selling their homes. Deciding how you would prefer to be paid: by a monthly payment amount, a line of credit, or a lump sum, you may take out a loan based on your home equity. The loan doesn't have to be repaid until the homeowner sells the residence, moves out, or passes away.

Please feel free to listen to my video below and/or view my .pdf brochure on Reverse Mortgages Click the link to view: Nathan Nelson Reverse_Mortgage_Purchase1.pdf

                                     
                                                                                                                           Common Myths and Misconceptions of Reverse Mortgage Loans

You can find below some of the many myths and misconceptions surrounding reverse mortgage loan industry. You can believe them, or you can read on and come up with a more informed decision. Call me with other questions or concerns you have.

Myth No. 1: The lender will own my home with my reverse mortgage loan.

This misconception is on top of the list for this industry for a very good reason: it is the most common misperception there is surrounding reverse mortgages. When you take out a reverse mortgage loan, you are still responsible for your own home – for maintaining it, using it to its limits, for paying property taxes and for paying home insurance fees. You can even sell it if you like.

Myth No. 2: My loved ones will pay for the loan.

Reverse mortgage loans are non-recourse loans. Your lender can only recoup his investment after the sale or refinancing of the home. You will never owe more than the value of your home when the loan is paid.

Myth No. 3: I must have zero debt on my home to qualify for reverse mortgage.

If you still have outstanding balances on your mortgages, a portion of the reverse mortgage loan can be used to pay for the existing loan. You can do what you want with the remaining amount.

Myth No. 4: Having a good line of credit and good credit standing is a pre-requisite to a reverse mortgage.

Your lender will not even look at your line of credit when going through your reverse mortgage application. It will only check if you have taxes and other government debts that are outstanding.

Myth No. 5: I’ll be living on debt with reverse mortgage.

A house is actually a dead investment – you cannot make money on it until you take out a mortgage. With a reverse mortgage you are actually just converting your equity into tax-free cash. The entire industry is based on using your home to the limits, being able to make money on your home and live in it at the same time.

Myth No. 6: My lender is going to sell my house when the reverse mortgage loan becomes due.

This misconception is false, the loan only becomes due when you, on a permanent basis, no longer live in your own home. In most cases, this happens is when you have passed on. When this happens, your heirs pay the loan through a refinancing program or by selling off other assets. They can also sell the house and use sales proceeds to pay off the debt.  

Latest Testimonial: (Please call or email me for more references and testimonials)

"As senior citizens, my husband and I were finding it hard to financially live in our present home without depleting our investment, and social security wasn't enough to sustain us. We investigated living in a senior community and liked the idea. Our realtor, financial advisor and mortgage consultant (Nathan Nelson) suggested a reverse mortgage. We investigated the pros and cons to a reverse mortgage and decided to proceed. It has been the best thing we did! We love our new house and financially we are in a much better place. Our funds will sustain us way into the future. I would recommend this…"

Janice and George Doneux