“The bank will assume ownership of my home when I get a Reverse Mortgage.” False
You will continue to own your home, and retain title, throughout the life of the Reverse Mortgage.**
“I can’t qualify for a Reverse Mortgage if I have an existing mortgage, or other real estate secured debt.” False
 Even if you have an outstanding first mortgage, or some other real estate secured debt (i.e. a home equity loan, tax lien, etc.), you may be able to qualify for a Reverse Mortgage. The proceeds of the Reverse Mortgage must first be used to pay off such debts however.
“When my Reverse Mortgage comes due, my children may owe more than the house is worth.” False
The repayment amount of a Reverse Mortgage cannot exceed the home’s value.
“My Medicare and Social Security benefits will be affected by a Reverse Mortgage.” False
 Reverse mortgage payments should not affect Medicare or Social Security benefits. Additionally, Reverse Mortgage payments should not affect Supplemental Security Income (SSI) benefits or eligibility as long as any Reverse Mortgage advances are spent within the month they are received. * * Consult your Medicare and Social Security Administrators.
“I have to have sufficient income and good credit to qualify for a Reverse Mortgage.” False
A Reverse Mortgage has no income or credit requirements. To qualify, homeowners must have sufficient equity, be at least 62 years of age, and use the home as their primary residence.
“Having a Reverse Mortgage will require that I make monthly payments.” False
 You’ll never have to make monthly loan payments. Payment of taxes, insurance and the general upkeep of the home are the only responsibilities of the homeowner.** When you sell your home, when it is no longer your primary residence, or when your estate is settled, the loan must then be repaid.
“A Reverse Mortgage is for desperate seniors who have little income.” False
M&T’s Reverse Mortgage is a valuable financial planning tool that’s been used by homeowners in a variety of situations to enhance their quality of life and better manage their assets.
* Consult your Social Security, Medicare or other financial advisor to determine how Reverse Mortgage payments may affect your particular situation. Also consult your tax advisor.
** You must also continue to occupy your home as your primary residence, keep it in good repair, with all taxes and insurance premiums up to date. Subject to the terms of your mortgage. |
