Reverse Mortgage Facts

Myth vs. Truth

A lot of what people “know” about reverse mortgages is outdated or just wrong. Tap each card to see the real answer.

Myth 1

The bank takes ownership of your home once you get a reverse mortgage.

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Truth 1

You keep ownership of your home. The loan is only repaid when the home is sold.

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Myth 2

Your heirs could be stuck paying off a huge debt after you’re gone.

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Truth 2

Heirs never owe more than the home’s value, even if the house has depreciated.

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Myth 3

You have to make a monthly payment, just like a regular mortgage.

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Truth 3

There’s no required monthly payment. Unpaid interest is simply added to the loan balance.

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Myth 4

You must own your home outright, with no mortgage, to qualify.

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Truth 4

A current mortgage doesn’t disqualify you. It just needs to be paid off using the reverse mortgage funds.

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Myth 5

The money can only be used for medical bills or home repairs.

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Truth 5

Proceeds can be used however you need — medical costs, utilities, paying off high-interest credit card debt, and more.

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Myth 6

Reverse mortgages are only a last resort for people who’ve run out of options.

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Truth 6

They’re increasingly used as a strategic tool to boost cash flow, or even to purchase a new home.

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Have a question about your own situation?

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Renee Duval, Independent Mortgage Broker, NMLS #97967 · Licensed by the New Hampshire Banking Department · Equal Housing Lender.
This is general information, not a loan offer or guarantee of terms. Actual eligibility, rates, and available loan amount depend on individual circumstances.
Homeowners who obtain a reverse mortgage are always responsible for property taxes, insurance, maintenance, utilities, and HOA fees (if applicable).

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