Reverse mortgages have gotten a bad rap in recent years. The mainstream media has touted stories of elderly people losing their homes, and creating a fear based narrative surrounding this product. But the truth is, a reverse mortgage can be a great option in certain situations.
On today’s show, Debbie Bloyd from DLB Mortgage Services is here to debunk some of the biggest myths surrounding reverse mortgages. Debbie is well-versed in the mortgage industry and has over 15 years experience with reverse mortgages. You’re going to learn some of the biggest misconceptions, the truth about how the product actually works, and more!
On this episode you’ll learn:
- The two types of people who are a match for reverse mortgages.
- Who owns the home in a reverse mortgage.
- Why there’s a stigma around reverse mortgages.
- And much more!
The Two Types of People Who Are a Match for Reverse Mortgages
You must be over 62 to qualify for a reverse mortgage. Debbie says there are two sets of people who typically use the reverse mortgage: either those who are on Social Security who need cash, or savvy investors who are using the reverse mortgage as an investment strategy.
Who Owns the Home in a Reverse Mortgage
There’s a huge misconception that the lender or the government takes over the title in a reverse mortgage. The truth is, the homeowner remains on the title. The loan is not due unless the owners decide to sell.
Why There’s Such a Stigma Around Reverse Mortgages
One previous problem with reverse mortgages is that applicants did not read their paperwork or realize what they had signed. As with any other mortgage, the homeowner is still liable for taxes and insurance in a reverse mortgage. There was a time when some homeowners failed to pay their taxes and lost their homes, and this received media coverage. As always, it’s important to read the fine print with any financial product.
LinkedIn.com/investing – Get $50 off your first job post
Book a Call with Our Team
Subscribe to Investing in Real Estate on Apple Podcasts
Find Your Financial Freedom Number
Subscribe to the Morris Invest YouTube channel
Like Morris Invest on Facebook
DISCLAIMER: I am not a financial adviser. I only express my opinion based on my experience. Your experience may be different. These videos are for educational and inspirational purposes only. Investing of any kind involves risk. While it is possible to minimize risk, your investments are solely your responsibility. It is imperative that you conduct your own research. There is no guarantee of gains or losses on investments.
AFFILIATE DISCLOSURE: Some of the links on this channel are affiliate links, meaning, at NO additional cost to you, I may earn a commission if you click through and make a purchase and/or subscribe. However, this does not impact my opinion. We recommend them because they are helpful and useful, not because of the small commissions we make if you decide to use their services. Please do not spend any money on these products unless you feel you need them or that they will help you achieve your goals.
Ready To Build Passive Income Through Rental Real Estate?
Ready to talk about your goals? We're here to show you the tools and teach you the process to begin earning legacy wealth for you and your family.