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Myth
The bank will own my home.
Reality
You retain title to your home. Much like a traditional mortgage your home serves as security against the debt obligation.
Myth
My heirs will get stuck with repaying a loan balance greater than the value of the home when I pass.
Reality
Reverse mortgages are non-recourse – you heirs will never owe more than the value of the home.
Myth
The reverse mortgage cash I received is taxable.
Reality
Reverse mortgage proceeds are not considered income and are tax-free.
Myth
A reverse mortgage will affect my Social Security and Medicare benefits.
Reality
Reverse mortgages will NOT affect your social security and medicare benefits because the proceeds you receive are tax-free and thus do not increase your taxable income.
Myth
I can’t get a reverse mortage because I have poor credit.
Reality
Reverse mortgages do not consider credit, income, asset, or even health concerns in the equation.
Myth
I have a mortgage on my home so I don’t qualify.
Reality
Your home doesn’t not need to be mortgage free to qualify.