Recent research indicates several myths that seniors are concerned about prior to deciding if a reverse mortgage is the best decision for their family and home. The following examination will clarify these myths and will …show more content…
This in no way means that they have to own free and clear. With this minimum amount of required equity, the senior will begin maximizing on the benefits of a reverse mortgage.
Myth 3: The senior is limited on how they spend the money from their reverse mortgage.
This is the worst myth yet. There are no restrictions on how the senior spends their cash from the reverse. In fact, they have several different options with how they receive the money to better accommodate their individual lifestyle. New car payments, college for grandchildren, home repairs, medication/ long-term care and investments just name a few ways in which seniors choose to spend the money from their reverse mortgage. Clearly, the possibilities are endless.
The senior has just as much flexibility with how they choose to receive the money. They can choose individually or combinations from the following: lump sum distribution, term payment, tenure payment (fixed monthly payment for the rest of their life) or a line of credit where the money can be spent when needed. How ever the money is distributed, the senior chooses what is best for