Ten reverse mortgage myths, sorted out.

The bank takes your home.

You keep title to your home. The lender records a lien, exactly like any other mortgage.

My children will inherit a debt.

HECMs are non-recourse. Heirs never owe more than the home is worth at repayment.

I could be forced out of my home.

As long as you pay property taxes, insurance, and maintain the home, you can live there for life.

You have to be poor or desperate.

Some of the most sophisticated uses of a HECM line of credit are as a stand-by retirement asset for financially secure retirees.

Reverse mortgages are a scam.

The HECM program is FHA-insured, federally regulated, and requires independent counseling before you can apply.

You can't leave your home to your heirs.

You can. Heirs can sell, refinance, or walk away, their choice.

Interest rates are outrageous.

HECM rates are competitive with other mortgage products. What's different is how interest accrues, not that it's inflated.

You lose your Social Security or Medicare.

Reverse mortgage proceeds don't count as income for those benefits. Medicaid is a different story, Brian will explain.

You have to own the home free and clear.

Not true. Most Bloomington borrowers use HECM proceeds to pay off an existing mortgage as part of the transaction.

It's the same as a HELOC.

A HELOC has monthly payments, a fixed draw period, and can be frozen or reduced by the bank. A HECM has no required monthly payment, cannot be frozen, and the available line grows over time.