Reverse Mortgages Are Treated As Income

A reverse mortgage is a special type of home loan that lets you convert a portion of the equity in your home into cash. Reverse mortgage is the best option and it’s booming around the world. Reverse mortgage has many features and it gives the complete peace to the seniors. There are many misconceptions and simply bad information about what a reverse mortgage is and more importantly what some of the consequences are regarding a reverse mortgage. Below are listed some of the most common myths held and the facts behind them. Hopefully dispelling some of these myths will present seniors with a new opportunity to access some of the wealth they have accumulated over the years. You must have accurate and update reverse mortgage information from a trusted source of information and reverse mortgage lender.

Now a very important thing about reverse mortgage is that if the loan is sold, the reverse mortgage term will never change. Most of the reverse mortgages are sold to Fannie Mae to generate more funds for additional reverse mortgages, but the terms signed during the closing of the specific loan never change. Another very important thing about reverse mortgage that a reverse mortgage will not affect a majority of benefits earned by seniors so long as the funds from a reverse mortgage are treated as income and not accumulated. Programs do vary by state as to specific dollar amounts and you can check with your local “Agency on Aging”, or similar organization. So, reverse mortgages are still getting popular and now become the key choice for the seniors.