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Dispelling the myths surrounding reverse mortgages.

Perhaps it’s the popularity of those late-night TV infomercials. You know the ones: a celebrity spokesperson (strategically sitting in front of a bookshelf) leans into the camera and starts a conversation with that elusive 62 year-old and up demographic.

Or maybe it’s the stigma throughout the years as being a “last resort” loan for those in need. A lifeline, so to speak.

For whatever the reason, people have been very suspicious of reverse mortgages for decades.  And yet, even with all the efforts to alter the perception of reverse mortgages as a viable financial tool for people during their retirement years, the misconceptions persist.

We want to change that right here and now. So let’s clear the slate, set aside the confusion, cast away the small print and pesky asterisks and start by debunking the top five myths surrounding reverse mortgages. Here we go (in no particular order):

I Have a Mortgage So I Can’t Get a Reverse

Don’t have your home fully paid off? As long as you have equity in your home, you may still qualify for a reverse mortgage.

Even if you don’t think you have enough equity in your home, a reverse mortgage could be a great financial tool moving forward. An expert loan officer can help you determine what’s right for your situation. And take this to heart: statistics show that many homeowners over the age of 62 still have a mortgage and owe money on their primary residence. So if you don’t own your home outright you are not alone.

REALITY

Reverse Mortgages Have Large Out-of-Pocket Expenses

Similar to any traditional mortgage, reverse mortgages do have costs and fees.  The majority of these fees are the same fees you would pay for any mortgage. The good news is that you can roll most of them into the loan, which greatly reduces any out of pocket expenses. In fact, many borrowers pay little to no fees out of pocket.

Finance of America Reverse even has products with fees much less than fees tied to a traditional mortgage.

Your lender should provide you with a detailed cost breakdown that explains the different interest and pricing options, closing costs and fees, which can vary based upon the type and size of the loan.

REALITY

I Will Have Nothing to Leave My Children

With a reverse mortgage, you can still leave your home to your children. The title will pass to your estate. Heirs can choose to either keep the house by refinancing the existing mortgage balance or if there is still remaining equity, sell the home and keep what remains from the balance of the loan and the proceeds of the sale.

You always have the option to make elective payments to pay down or minimize the impact of the accrual of interest on your loan. This would protect equity to pass on.

In the case that home values go down, know that you can never owe more than the value of the home at the time your estate has to repay the reverse mortgage. These are non-recourse loans and your heirs are protected from inheriting debt from the reverse mortgage.

REALITY

Reverse Mortgages are Only For Desperate People

Not so. A reverse mortgage can be a true path forward in retirement. You’ll find that there are many people today who are using reverse mortgages for a variety of reasons. The most common use is to pay off an existing mortgage. While some might use this tool as a means to defer collecting social security or as a safety net for emergencies, others are using home equity to enhance their life with greater flexibility and options in retirement. Some might want to realize a business idea, travel, help family members with education expenses, make charitable donations, or even use the funds for buying additional real estate. The beauty is, this is your hard-earned asset. A reverse mortgage can be an effective tool to help add choices to your retirement years.

REALITY

The Bank Will Own My Home

Don’t worry. Even with a reverse mortgage, your home is still yours.

As long as you meet the requirements of the loan you will retain ownership and keep title to your home. And, contrary to popular belief, the requirements of the loan are very simple: the home must be your primary residence, you must maintain the home, you have to pay your property charges (homeowners insurance, taxes, HOA fees), and you must honor the terms of your loan documents. The only way you could lose your home is if you don’t meet one of these requirements.

REALITY

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Optimize Your Retirement with a Reverse Mortgage

A Finance of America Reverse (FAR) Mortgage lets you tap into your home's unlocked potential so you can realize your retirement goals.

A reverse mortgage can enhance your financial future, whether you're looking to improve your retirement outlook or write the next chapter in your life.

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Are you ready for retirement?

Where are you with your retirement planning? While some of you may have been preparing for this moment for years, many may now be realizing you need to start planning for tomorrow, today. A reverse mortgage from FAR may be the right next step.

Tools for the road ahead.

When it comes to planning your next chapter in life, it’s important to know all of the options available to you to make it possible.

FAR is here to help with a number of reverse mortgage products designed to leverage your unique situation and get the wheels in motion toward a bright and healthy retirement future.

Simply put, a reverse mortgage is a loan that lets homeowners 62 years of age or older tap into their home’s equity and convert it into either cash, a line of credit or monthly payments.


HomeSafe®

Created by FAR, HomeSafe is a reverse mortgage for higher value homes that allow larger loan amounts to be taken out by qualified borrowers. Tap into your home equity or use it to purchase a new home that is a million dollars or more.

A Home Equity Conversion Mortgage, or HECM, is a reverse mortgage insured by the FHA that is available to homeowners 62 years or older that have significant equity built up in their home and would like to convert it into supplemental income.

HECM



Reverse for Purchase

Refinancing

Thinking about buying a new home or condo? Our Reverse for Purchase options could be a smart choice for your needs. Whether it’s our HECM for Purchase or our HomeSafe for Purchase loan, these reverse mortgage loans allow you to either keep cash on hand or increase your buying power.

A refinance gives homeowners who have already obtained a reverse mortgage the opportunity to refinance their loan into a new loan. For homeowners who have seen their homes significantly appreciate in value, refinancing is a way to gain access to that additional equity.


Why FAR?

We are Finance of America Reverse LLC (FAR), one of the nation’s leading financial lenders specializing in Reverse Mortgages. We offer simple, honest advice to help people see a more promising and rewarding retirement future. We also offer more solutions for using your home equity to power your next chapter than anyone else in the industry.

Talk to a Loan Educator: 
1-844-427-6196

Here to help.
Here for you.

Why FAR?

We are Finance of America Reverse LLC (FAR), one of the nation’s leading financial lenders specializing in Reverse Mortgages. We offer simple, honest advice to help people see a more promising and rewarding retirement future. We also offer more solutions for using your home equity to power your next chapter than anyone else in the industry.

Talk to a Loan Educator: 
1-844-802-0469

Here to help.

Fill out the form below and we’ll reach out with more information.

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These materials are not from HUD or FHA and were not approved by HUD or a government agency.

©2021 Finance of America Reverse LLC is licensed nationwide | Equal Housing Opportunity | NMLS ID # 2285 (www.nmlsconsumeraccess.org) | 8023 East 63rd Place, Suite 700 | Tulsa, OK 74133 | AZ Mortgage Banker License #0921300 | Licensed by the Department of Financial Protection and Innovation under the California Residential Mortgage Lending Act | Georgia Residential Mortgage Licensee #23647 | Kansas Licensed Mortgage Company | Massachusetts Lender/Broker License MC2285: Finance of America Reverse LLC | Licensed by the N.J. Department of Banking and Insurance | Licensed Mortgage Banker -- NYS Banking Department where Finance of America Reverse is known as FAReverse LLC in lieu of true name Finance of America Reverse LLC | Rhode Island Licensed Lender | Not all products and options are available in all states | Terms subject to change without notice | For licensing information go to: www.nmlsconsumeraccess.org When the loan is due and payable, some or all of the equity in the property that is the subject of the reverse mortgage no longer belongs to borrowers, who may need to sell the home or otherwise repay the loan with interest from other proceeds. The lender may charge an origination fee, mortgage insurance premium, closing costs and servicing fees (added to the balance of the loan). The balance of the loan grows over time and the lender charges interest on the balance. Borrowers are responsible for paying property taxes, homeowner’s insurance, maintenance, and related taxes (which may be substantial). We do not establish an escrow account for disbursements of these payments. A set-aside account can be set up to pay taxes and insurance and may be required in some cases. Borrowers must occupy home as their primary residence and pay for ongoing maintenance; otherwise the loan becomes due and payable. The loan also becomes due and payable (and the property may be subject to a tax lien, other encumbrance, or foreclosure) when the last borrower, or eligible non-borrowing surviving spouse, dies, sells the home, permanently moves out, defaults on taxes, insurance payments, or maintenance, or does not otherwise comply with the loan terms. Interest is not tax-deductible until the loan is partially or fully repaid.

Questions or complaints? Email us at customerrelations@financeofamerica.com