Compared to other financial concepts, mortgages are often perceived as some of the most complex of the bunch, especially when it comes to reverse mortgages.

During the homeownership process, the idea of getting a reverse mortgage may come up sooner or later because of how costly matters can get in the long run. Regardless of whether it’s over a sudden change of heart or the reality that owning a house is no longer as feasible as it used to be, a solution like this will come in handy whenever used properly.

However, the main problem of reverse mortgages—no matter how helpful they are—is that the intimidation associated with them comes from the fact that people don’t know enough about them. It also happens that the misconceptions that surround the financial solution in question don’t help with the aforementioned problem, and you might be falling for them yourself.

Debunking Different Reverse Mortgage Myths

On the surface, reverse mortgages can seem straightforward. After all, the name alone is self-explanatory because getting such a solution entails using your property’s equity to get funding from the bank, right?

Well, all seems so simple until you actually find yourself struggling to decipher whether or not a seemingly true myth is real enough. Unfortunately, far too many Californian homeowners put themselves deeper in tough financial stops after falling for misconceptions that pointed them in the wrong direction!

Suppose you’re thinking about getting a reverse mortgage to help ease up the current financial situation or predicament that you might have but are a bit hesitant to do so. In that case, there may be a few misconceptions holding you back. To help ensure that you enter the whole experience or process in the most well-aware way possible, let’s debunk common reverse mortgage myths you shouldn’t fall for:

Myth #1: When you get a reverse mortgage, your heirs won’t be able to get your home. Understand that pulling out a reverse mortgage won’t put you in a situation wherein you’ll end up losing all that you worked hard for right after you pass on. Compared to other myths on this list, the dreaded possibility that a home won’t be passed down to one’s descendants is one of the most prevalent reasons that Californians opt-out of using their equity for themselves. If you decide to take a reverse mortgage your estate will still inherit the home in the future.  Family members will need to deal with a lien, the reverse mortgage, on the title for the payoff amount.  This can be done by refinancing the reverse mortgage into a forward mortgage into an heirs name (or several heirs) or the home can be sold and all proceeds, after paying the fees including paying off the reverse mortgage, will go to the heirs.

Myth #2: You have to sell your home to the bank when you get a reverse mortgage. Admittedly, the idea of getting a reverse solution can seem intimidating because it seems you are forking your home’s equity over for some payment back to you. However, with a reverse mortgage you are not giving your equity to anyone, you are simply using it for yourself.  You will be using your equity to pay the interest on the reverse mortgage (therefore no out of pocket for you) and if you have enough equity you can take a lump sum out to help you buy a car or use towards living expense as needed and you still have no payment because you are using your homes equity to pay for these items.

Myth #3: You may end up getting forced out of your home. As mentioned previously, getting a reverse mortgage isn’t pawning your home.  You will not face eviction or foreclosure if you run out of equity to pay the interest on the reverse mortgage. With a reverse mortgage, you stay in your home as long as you would like.  Once you vacate your home then it’s time to pay back the reverse mortgage.  The reverse mortgage will never force you to leave. Once you vacate your property you can refinance into a forward mortgage, your heirs can refinance into a forward mortgage or another reverse mortgage, your heirs can sell your home and retain any equity left after paying all fees to sell a home plus pay off the reverse mortgage, or if all the equity is used up for yourself then your home can be foreclosed on and it does not require your heirs to pay anything out of your estate.

Reverse Mortgage in Roseville with Steelman Mortgages

For the most part, reverse mortgages can easily come off as intimidating alternatives because of the conditions they entail. However, it’s worth noting that most of the misconceptions they’re associated with aren’t as real as you might think. Through help, you can dispel the uncertainty that you might have over the possibility of getting the solution for your needs!

Are you a homeowner looking for a mortgage broker to help you with a reverse mortgage in Roseville? At Steelman Mortgages, we can make the mortgage process smooth, simple, and pleasant. Call us at (916) 847-7263 now to learn more about how we can help you!

Saving for retirement can be quite a challenge, especially when you’re already a senior. If your monthly income consists of Social Security, there’s a big chance that you’re struggling to make ends meet. Although it’s a much-appreciated benefit, it’s hasn’t kept up with the rate of inflation. As healthcare costs continue to skyrocket, it’s become tough to survive as a senior American.

However, as a senior, you probably own a home, which can be a valuable income source. You can sell it and use the money to support yourself and your living expenses. Although you’ll need a place to live, getting a reverse mortgage in Roseville can take care of that.

What’s a Reverse Mortgage?

A reverse mortgage is a type of loan except that you won’t have to make any payments as a homeowner. Instead, the lender pays you every month, and you choose how to receive the payments. However, you pay interest on the money you receive, which mixes in with the loan balance, so you don’t need to pay anything right away. The entire loan balance becomes payable when you move, sell your home, or pass away.

To qualify for a reverse mortgage, you need to be at least 62 years old, reside in the home as your primary residence, and keep up with your homeownership expenses. That means you have to continue paying property taxes, maintaining your property, and keeping homeowners’ insurance.

Here are three reasons you’ll benefit from a reverse mortgage:

1. Your Credit Score Won’t Matter. Many borrowers who are in dire need of money struggle with low credit scores. Financial institutions and lenders generally prefer people with solid credit scores, which makes borrowing affordably a challenge. Luckily, if you need the money and don’t have the ideal credit score, a reverse mortgage is a great solution. It doesn’t take your credit score into consideration, which is a massive relief for many borrowers. All you need is to have equity in your home, and you’re probably going to get that approval.
2. You Can Use It for Anything. If you need additional support in paying for your necessities like food, electricity, and heat, a reverse mortgage makes that possible. However, if you have other expenses that don’t have anything to do with your home, like taking care of a pet, you can use your reverse mortgage for that, too! There aren’t any limits to what you can use a reverse mortgage for, especially if you have a wide variety of expenses. You can use it to upgrade your appliances, support your hobbies, or even travel.
3. You Don’t Need to Repay It Right Away. Unlike home equity loans, which are similar, you won’t have to pay back your reverse mortgage right away. Home equity loans require you to pay immediately, but with a reverse mortgage, you pay it only when you move, sell your property, or pass away. In the latter case, your heirs can take care of that for you, leaving you stress-free. These are incredible benefits that are difficult to find in any other kind of loan. Without the pressure to repay your loan, you can focus on sustaining yourself and taking care of your home.

Steelman Mortgages is Your Reverse Mortgage Broker in Roseville

Getting a mortgage in Roseville is complicated when you have a low credit score, but a reverse mortgage changes the game. It’s a great way to help you stay in your home during your retirement, helping you live comfortably and safely. With these three reasons, you’ll want to consider a reverse mortgage.

Are you looking for a mortgage broker in Roseville to consult about getting a reverse mortgage? If so, you’ve come to the right place! Steelman Mortgages provides home buyers and homeowners with personalized mortgage services that make the process smooth, simple, and enjoyable. We offer jumbo loans, FHA loans, first time home buyer loans, reverse mortgages, and many more! Call us today at (916) 847-7263, to see how we can help you!