Myths & Realities
MYTH: The lender will own my home.
You remain owner of the home and can live in it as long you meet the terms of the loan, and you can sell it for its remaining equity at any time that you like.
Your home passes to the heirs to decide whether to pay off any existing loan balance, sell it for the remaining equity or to walk away without any recourse on them.
Norcom works closely with you, your family, and financial planner to make sure you undertand the terms of the loan and its effects on the value of the estate.
MYTH: You're taxed on loan proceeds
Reverse Mortgage loan proceeds are tax free as it is not considered income. However, it is recommended that you consult your financial advisor and appropriate government agencies for any effect on taxes or government benefits.
MYTH: You cannot have an existing mortgage
More than half our clients not only have an existing mortgage to pay off, but some are in the middle of a foreclosure and save their home using a reverse mortgage.
MYTH: Only those with hardships can use a reverse mortgage loan
Everyone over age 62 should take time to learn about how a reverse mortgage really works. In the past reverse mortgages have made a significant impact in the lives of those who had mortgage debt or limited retirement funds. However, it's a surprise to many that a reverse mortgage is used even more as a strategic retirement option for those who have adequate resources elsewhere and especially those who want to maximize those retirement resources. If you care about the return you get on any of your investments, you'll want to learn about a reverse mortgage.