Do I Still Own My Home If I Get Reverse Mortgage?

Do I Own my home if I get Reverse MortgageA common question from folks considering a reverse mortgage is; “Do I still own my home if I get a reverse mortgage?

The answer is YES!

You own your home, your name remains on the title to your home. The reverse mortgage lender simply has a lien on your home the same way the lender that originally financed your home purchase or refinanced your mortgage did.

If you remember, when you took out mortgage loans on your home in the past, the lender that made you the loan had a secured interest in your home…or a lien against your home (the lender’s collateral) until such time that you either paid the loan back in full yourself or refinanced the mortgage with a new lender (who paid off the first lender in full.)

The Exact Same Thing Occurs When You Get a Reverse Mortgage.

The lender, has a secured interest in your property. (Your property is the collateral.) In other words; the lender has a lien against your home. You are still the owner of record, in EXACTLY the same way you were on any other mortgage loan that you may have had in the past.

If you have a mortgage balance on your home at the time you apply for a reverse mortgage, the reverse mortgage lender will pay off your current lender, (who has a lien against your property.) The reverse mortgage lender will basically take the place of your current mortgage lender. In other words, the reverse mortgage lender will now have a lien against your property, while your current mortgage lender will be removed because that loan will be paid in full from the proceeds of your new reverse mortgage loan.

Although the above explanation is a bit wordy, it is the precise answer to the question; “Do I Still Own My Home if I Get a Reverse Mortgage?

Folks have a tendency to over-think Reverse Mortgage Loans. They are not all that complicated, they are simply the “reverse” of a traditional mortgage….hence the name.

They are safe, they are government insured, and they have been financial life savers for many senior homeowners. You should find out today if a reverse mortgage is a good financial planning tool for you during your retirement years.

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