Many times people fear that they will lose control of their home if they take out a reverse mortgage loan. If you take out a reverse mortgage loan, the lender/bank does not own your home, nor do they have control over it. In fact, the title to the home is still in your name. The lender/bank simply has a lien against the home. As long as you keep up with your obligations on the loan (living in the home, maintaining the home, paying property taxes, homeowner’s insurance and any other property related charges), you will be able to remain in the home and retain control over it.
So, does that mean you can sell it? Of course! The sale of a home which has a reverse mortgage loan on it would be handled in a similar fashion as any other home sale. You would list the home for sale and repay what is due on the reverse mortgage loan when you close on that sale. One thing to keep in mind, however, is the fact that the reverse mortgage loan is a negative amortization loan. This means that the loan balance will rise over the years rather than go down. (As a side note, you can choose to make payments on the reverse mortgage loan to help keep the balance in check). So, the longer you stay in the house without paying anything towards the loan, the higher your payoff will be when you sell the home (in other words, you will receive less equity from the sale). Keep this in mind when deciding whether or not a reverse mortgage loan makes sense for you. When you know your options, you can make better choices for a strong financial future.
Order our free reverse mortgage loan guide to get more information, or call 855-469-7383, Ext. 802 to speak with a loan specialist.
Laura Funderburk is a highly sought after reverse mortgage loan specialist in Dallas, Texas. She has focused on this specialty loan for many years and stays up-to-date on the latest trends and changes. She is known for helping retirees supplement their retirement income using a reverse mortgage loan without being pushy or overbearing.
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