Misconceptions Are a Part of Life
Misconceptions are a part of life, and we all tend to have them.
When Seniors Get Accurate Information
A 2019 survey by the Brookings Institution found a significant?correlation between accurate information and a positive perception of the reverse mortgage. In other words, when seniors learn how a reverse mortgage?really?works,?they like it?–?and they often choose to get one as a result.? 85 percent of survey respondents who had a reverse mortgage reported being satisfied or very satisfied with their decision to get one. Obviously, there’s a big disconnect between the popular perception of reverse mortgages and the experiences of seniors who have one.
The popular perception of the reverse mortgage?goes something like this: you get money from your house with no monthly payments. The fees and interest rates are sky high; you’ll sign over your house to the bank (for a steep discount), and you must live in the house for the rest of your life with no option to sell.? You will also use up all your home equity and leave a big debt for your heirs to pay off. You should only get a reverse mortgage as a last resort when you’re truly broke and desperate.
Wow, sounds amazing, right? Where do I sign up??
Fortunately, what I just described isn’t true about the reverse mortgage. I’d like to discuss what a reverse mortgage does?do. In our next post Reverse Mortgage Basics