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Reverse Mortgage Myths: Informational Downloads:
Reverse Mortgage Myths & Misconceptions
Reverse Mortgages are revolutionizing the way seniors are securing financing. While HUD's Reverse Mortgage is a safe and federally-insured program that gives older Americans greater financial security, many seniors are bombarded with falsehoods. Please take the time to read through the Myths and Misconceptions and contact a representative if you have any questions. Unfortunately, the relative newness of this program has ignited the old saying, "people fear what they don't understand." So please exercise your own due diligence and get the proper answers; if someone can't answer your question than go to someone who can.

The Bank or Lender will take my home.
Not True - The homeowner always retains title to the property and can choose to sell the home at anytime. There are no prepayment penalties or restrictions of any kind.

My heirs will be held responsible for repayment of the Reverse Mortgage.
False - The Reverse Mortgage is a non-recourse loan. This means that the lender can only derive repayment of the loan from the proceeds of the sale of the property. Your heirs will not be responsible for the repayment of the loan. The reason why is that it is Government insured and the bank can only receive payment of the loan from the value of the home, regardless of current status. The same rule applies if a catastrophe struck and the value of the home is reduced.

To qualify, my home must be paid off "Free & Clear".
Not True - You may payoff a mortgage or equity loan with a Reverse Mortgage. In fact, many people get a Reverse Mortgage for this reason: to get rid of their monthly payments forever.

I must have good income and credit to qualify.
False - A Reverse Mortgage has no income or credit qualifications. To qualify you need to be at least 62 years of age and your home must be your primary residence and the home must have enough equity in it. Consult your representative for further info.

The Reverse Mortgage requires that I make monthly payments.
Not True - There are never monthly payments.
The borrower is responsible for payment of taxes, insurance, and general upkeep of the home and that is it.

If I do a Reverse Mortgage I will eat up all my equity and leave nothing for my kids.
False - "Retained Equity" is a very important concept to grasp. Realize that your property will continue to appreciate (the whole value of the estate) and you pay interest on only the smaller amount borrowed. Please consult your representative for amortization tables that might apply to your specific situation.

The NRMLA Consumer Guide to Reverse Mortgages
NRMLA's first consumer guide to help educate senior's about reverse mortgages.

Using Reverse Mortgages for Health Care: A NRMLA Guide for Consumers
This guide helps explain how reverse mortgages can be used to help pay for your health care needs and preserve your financial security.

Just the FAQs: Answers to Common Questions About Reverse Mortgages
This guide lists the most common questions asked by consumers about reverse mortgages—with the answers from the National Reverse Mortgage Lenders Association. The questions are broken into three groups: those appropriate to ask before getting a reverse mortgage; those applicable during a reverse mortgage; and those applicable at the end of a reverse mortgage.

FannieMae's Money From Home
A detailed guide to understanding reverse mortgages.

AARP's "Home Made Money"
A Consumer's Guide to Reverse Mortgages"

Considering a Reverse Mortgage?
Review these 5 steps to see if a Reverse Mortgage is right for you. 

What is a Reverse Mortgage?
A reverse mortgage is a special type of loan used by older Americans to convert the equity in their homes into cash. The money from a reverse mortgage can provide seniors with the financial security they need to fully enjoy their retirement years.

The reverse mortgage is aptly named because the payment stream is "reversed." Instead of making monthly payments to a lender, as with a regular first mortgage or home equity loan, a lender makes payments to you.

While a reverse mortgage loan is outstanding, you continue to own the home and hold title to it.

The money from a reverse mortgage can be used for ANYTHING: daily living expenses; home repairs and home modifications; medical bills and prescription drugs; pay-off of existing debts; continuing education; travel; long-term health care; prevention of foreclosure; and other needs.
Who Qualifies?

To qualify for a reverse mortgage you must be at least 62 and own your own home. There are no income or medical requirements to qualify. You may be eligible for a reverse mortgage even if you still owe money on a first or second mortgage. In fact, many seniors get a reverse mortgage to pay off a first mortgage.

You can choose how to receive the money from a reverse mortgage. The options are:

bullet all at once (lump sum)
bullet fixed monthly payments (for up to life)
bullet a line of credit
bullet or a combination of these.

The most popular option - chosen by more than 60 percent of borrowers - is the line of credit, which allows you to draw on the loan proceeds at any time.

Contact Us
Golden State Mortgage Trust
6809 Indiana Ave. Suite 200
Riverside, Ca. 92506
800/698-6731
info@reverseloan.com





We do reverse loans in California only.
 

Golden State Mortgage Trust, Inc.  ◦ 6809 Indiana Ave. #200 ◦ Riverside, Ca. ◦ 92506 ◦ Phone: 800/698-6731