Senior Equity Reverse Mortgage^® Dispel common reverse mortgage myths.

Reverse mortgages are a relatively new family of products. As people learn more about them, there can be a lot of misinformation mixed in with the valuable information. This guide will help you sort out fact from fiction.

Click on a myth to learn the facts.

• Reverse mortgages are very risky and unsafe.

  The Fact Is

  Reverse mortgages are widely regarded as a safe financial product for seniors, as numerous measures—on a national level and within Bank of America—are in place to ensure seniors' best interests are protected.

  The federal government has enacted strict regulations on reverse mortgages. Additionally, the National Reverse Mortgage Lenders Association (NRMLA) was created to develop and promote best practices in the reverse mortgage industry. Bank of America is a member of NRMLA and adheres to its Code of Ethics and Professional Responsibility.

  Bank of America wants to make sure that seniors know the facts, so we require that all seniors interested in a reverse mortgage from Bank of America receive counseling from an independent, third-party HUD counselor. This counselor, who is not a Bank of America associate, ensures that seniors fully understand how reverse mortgages work and also explains other financial options available.

  What's more, once you begin your application, you have the opportunity to stop the process if you change your mind about reverse mortgages. You can also rest assured that Bank of America is a trusted lender, as we're one of the world's largest financial institutions and we've been in the mortgage business for more than 100 years.

  While reverse mortgages are very safe and have helped many seniors achieve and maintain financial stability, that doesn't mean they're the right financial solution for everyone. Take advantage of the resources on this website to help determine if a reverse mortgage is an option for you.

• My home must be debt-free to qualify for a reverse mortgage.

  The Fact Is

  You may be eligible for a reverse mortgage if you still owe money on your existing mortgage. However, the existing mortgage balance must be paid off at closing. You can choose to pay off the balance with funds from the reverse mortgage or another source.

  Additionally, no income or credit score qualifications are necessary to be eligible for a reverse mortgage. Learn more about eligibility requirements.

• The bank owns my home after I get a reverse mortgage.

  The Fact Is

  When you get a reverse mortgage, you still own your home. The title remains in your name. And as the homeowner, you will be expected to continue to pay property taxes and insurance and perform general maintenance and upkeep of your home, just as you do today. Take a moment to learn more about your responsibilities.

• When my reverse mortgage becomes due, the bank owns my home.

  The Fact Is

  You always retain the title to your home. A reverse mortgage functions like any other mortgage with a lien placed on the property. When you no longer live in the home, the loan becomes due and must be paid.¹

  There are two basic ways you can pay off the loan balance:
  - You or your heirs can sell the home and use the proceeds
  - Use other sources of funding

  Learn more about this topic with our loan maturity guide.

• Reverse mortgages are taxable and will affect my Social Security and Medicare.

  The Fact Is

  Reverse mortgages do not affect entitlement programs such as Medicare. However, certain need-based government aid programs, such as Supplemental Security Income (SSI) and Medicaid, may be affected. Additionally, your eligibility to participate in any real estate tax deferral program offered by your city or county may be impacted. This information is not intended to provide any type of advice, and we recommend you consult with your Medicare, Social Security or Medicaid program administrator to determine the specific rules.