If you could use some more funds during retirement, one option is to apply for a reverse mortgage. This is a lending product for seniors who own significant equity in their homes. If you qualify, you can use the reverse mortgage funds as you see fit.
Some senior homeowners don’t apply for a reverse mortgage because they believe some common and damaging myths about them. Let’s go over some of those misconceptions now, and explain how reverse mortgages really work.

- Myth: I will no longer own my home.
- Fact: You will continue to own your home after taking out a reverse mortgage. Ownership does not revert to the bank or get transferred to the government. Only the people whose names are on the mortgage (you and any co-borrowers) will own the property.
- Myth: I will be passing down my reverse mortgage debt to my heirs.
- Fact: You will not be passing down your reverse mortgage debt. Your heirs will either need to sell the home to pay off the reverse mortgage, or pay off the reverse mortgage if they prefer to keep the home. You might be worried that they will be forced to pay the difference if the sale of the home does not pay off the full reverse mortgage. But your heirs will never be held responsible for that amount.
- Myth: I will have to move out of my home.
- Fact: You will not have to move out of your home. In fact, reverse mortgages are designed primarily for people who expect to stay in their homes for the rest of their lives. You will need to keep up with your mortgage payments (if you still owe on your home loan) and other home maintenance payments. So long as you do that, you will not need to pay off the reverse mortgage or leave your home. The reverse mortgage will come due once there is a qualifying event such as the death of the last borrower or the sale of the home. If you never sell your home, and you keep up with the payments mentioned above, you will not need to pay off the loan.
- Myth: I will get foreclosed on.
- Fact: This myth is a result of looser restrictions governing reverse mortgage approval in past times. Since approvals are stricter now, it is not common for people to be foreclosed on after taking our a reverse mortgage. So long as you can keep up with your mortgage and home maintenance payments, you can stay in your home for as long as you want.
- Myth: Reverse mortgages are for desperate people.
- Fact: Some people believe that a reverse mortgage is a “last resort” for those who cannot get any other type of loan. This is not true, however. In fact, there are quite a few reasons to consider taking out a reverse mortgage rather than another type of loan, even if you qualify for other lending products. Many other types of loans have use restrictions, meaning you cannot just do whatever you want with the funds. But you can use your reverse mortgage funds for any purpose you want. You can even use them to pay for a vacation. It is also to your advantage to not have to pay off the reverse mortgage until a qualifying event makes it come due. With lots of other lending products, you would need to begin the repayment process after a short time.
Apply for a Reverse Mortgage in WA or CO
We have dispelled some common myths and misconceptions about reverse mortgages. You now have a better understanding of how they work and can serve your needs as a senior homeowner.
To apply for a reverse mortgage in King County, the greater Seattle area, or anywhere in WA or CO, please give us a call at (206) 352-6453 to schedule your consultation.
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