The Five Myths of Reverse Mortgages

Reverse mortgages have entered the public’s consciousness in the last decade, largely because of television advertising by some companies that handle these financial arrangements. However, most people don’t really know very much about reverse mortgages, and there are a number of myths and misunderstandings among people who might benefit from a reverse mortgage. In this report, Kris Wiltfong of Capstone Planning, LLC explains how these mortgages work and who can benefit from them.

Kris Wiltfong

Kris Wiltfong

Reverse mortgages are available to people aged 62 and older who have an equity interest in a home. A reverse mortgage is a way to convert some of that equity into monthly payments. Wiltfong points out that one big benefit of a reverse mortgage is that the funds received are not subject to tax. The concern about taxation of the money received is a common misconception.

Another common misconception is that, when you get a reverse mortgage, you no longer own your home. Of course, there will be a lien on the home to secure the payments, but the ownership of home doesn’t change. Naturally, if you are receiving the funds, you need to keep up your homeowner’s insurance and pay the property taxes, as always.

Contrary to what some people think, there are not large out-of-pocket expenses associated with reverse mortgages. The costs are comparable to those for any other mortgage. Another misconception is that reverse mortgages are only for people who are in serious financial straits. Wiltfong explains that anyone who wants to add some money to their retirement might want to consider a reverse mortgage.

If this sounds good, you can contact Capstone Planning at 386-202-4498 or go the Capstone Planning website.

Kris Wiltfong is a Risk Specialist at Capstone Planning, LLC of Palm Coast, Florida. The company, founded in 1997, focuses on retirement planning. One of the company’s primary focuses is risk management. Retirement News Today is a featured network of Sequence Media Group.