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12 LIVE IT UP! FRIDAY, OCTOBER 28, 2016 SANTA CRUZ SENTINEL 1535 Seabright Avenue, Santa Cruz SantaCruzHomeFinance.com NMLS # 237693 | CalBRE # 01316139 Reverse Mortgage Myths: Myth: The lender owns the home. You will retain the title and ownership during the life of the loan, and you can sell your home at any time. Myth: Borrowers pay taxes on loan proceeds. Reverse mortgage proceeds are tax-free as it is not considered income. However, it is recom- mended that you consult your financial advi- sor and appropriate government agencies for any effect on taxes or government benefits. Myth: The borrower is restricted on how to use the loan proceeds. Once any existing mortgage or lien has been paid off, the net loan proceeds from your reverse mortgage can be used for any reason. Many borrowers use it to supplement their retirement income, defer receiving Social Security benefits, payoff debt, pay for medical expenses, remodel their home, or help their adult children. Myth: The home must be free and clear of any existing mortgages. Actually, many borrowers use the reverse mortgage loan to pay off an existing mortgage and eliminate monthly mortgage payments. Borrowers must continue to pay required property taxes and homeowners insurance. 866.425.1250 or 831.425.1250 Santa Cruz Home Finance is your local source for reverse mortgages! It's Better to Give Than Receive! V O L U N T E E R S A S S I S T I N G I N A F O O D A S S E M B L Y L I N E A T G R E Y B E A R S