Common Reverse Mortgage Misconceptions

Common Reverse Mortgage Misconceptions

Professor Jamie Hopkins and Columbia University Professor Chris Mayer, CEO of Longbridge Financial, discuss some common misconceptions about reverse mortgages. Many people do not know that a reverse mortgage is a government insured program. Additionally, when a homeowner gets a reverse mortgage they maintain title of the home. This is actually a requirement of the program. In essence, a homeowner uses a reverse mortgage to borrow money from the bank by securing the loan with the home. Instead of making monthly payments like with a normal mortgage no monthly payments are required. With a reverse mortgage is repaid when the homeowner stops using the home as the principal residence.

Watch the video below to learn more about common reverse mortgage misconceptions.