A Story about Dealing with Financial Myths

Had coffee with a potential client last week.

Nice couple. Late 60s. House paid off.

They needed cash for medical bills but wouldn't even discuss a reverse mortgage.

Why?

Their daughter told them the bank would take their house.

I asked where she got that information.

"She read it somewhere online."

Not from an expert. Not from research. From somewhere online.

Here's what actually happens with a reverse mortgage.

You keep the title. The bank doesn't own your house. You can leave it to your kids if there's equity left after the loan is paid back.

Your heirs have options when you pass. They can pay off the loan and keep the house. They can sell it and keep any remaining equity. Or they can walk away if they choose.

But this couple almost missed out on a solution that could help them because of secondhand fear.

I get it. Reverse mortgages got a bad reputation years ago. Some of that was deserved.

But the rules changed. The protections got stronger. And the myths stayed the same.

The problem isn't reverse mortgages.

The problem is making financial decisions based on what someone's cousin's neighbor thinks instead of sitting down with someone who actually knows the facts.

You don't have to use a reverse mortgage. Maybe it's not right for you.

But at least know what you're saying no to.

Talk to an expert. Ask the hard questions. Look at your actual situation.

Don't let fear dressed up as advice cost you options you might need.