Reverse Mortgage Myths vs Facts

 

MYTH # 9:
Reverse Mortgages cost more than other mortgages

 

FACT:
Closing costs average only about one percent (1%) more than a regular FHA mortgage obtained on the same property. Compared to many other conventional mortgages, the Reverse Mortgage could actually be lower in cost and have a lower interest rate; conventional mortgages can charge more than the two percent (2%) origination fee allowed on all Reverse Mortgages.

 

MYTH # 10:
Your house needs too many repairs to qualify

 

FACT:
As part of the process of getting a Reverse Mortgage, an FHA-licensed appraiser performs a property appraisal. In estimating the home value, the appraiser lists any repairs required to bring the home up to FHA property standards. Repairs can usually be carried out and paid for through the Reverse Mortgage loan.

 

< Previous page