8. Reverse mortgage interest rates are higher than a regular mortgage. This is just not the case. In most cases the reverse mortgage has a lower rate than the current conforming fixed rate. The HECM product's interest rate is set by the Federal government.

9. I might "outlive" the loan (don't we all wish for that?). FHA/HUD reverse mortgages are designed specifically so that you can't outlive the loan. When you get the reverse mortgage, the lender will charge you 2% to purchase mandatory FHA mortgage insurance. That insurance guarantees that even if you live to be 100, you can never owe more than the value of your home and you can never be forced to leave.

10. A reverse mortgage is like a home equity loan. First, home equity loans may have many requirements such as high income, low debt, and good credit that a reverse mortgage does not. Second, you can "outlive" a home equity loan and end up being foreclosed on by the bank. This can never happen with a reverse mortgage. Third, a reverse mortgage usually has significantly lower interest rates.

Those were ten of the biggest misconceptions out there about reverse mortgages. I am sure I missed some but the key is get with a good reverse mortgage expert and they will be able to answer your questions. There are many resources that will help educate, I suggest you do some reading!

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