You’ve probably heard the term “reverse mortgage” quite a bit, but you might not fully understand what it is and how you can benefit from it. Don’t fret, though, because we have you covered. In today’s blog, Family Home Loan Texas discusses everything you need to know about this helpful loan.
What Is A Reverse Mortgage?
It is essentially a tool that allows you to leverage the equity you have built up in your home to receive a large, helpful loan. While having equity in your home gives peace of mind, sometimes you need to have funds liquid and readily available — which is precisely what a reverse mortgage provides. It is a loan that is available to individuals 62 years and older who have either fully paid off their mortgage or have over 50% equity in their home. Instead of paying a lender each month as you would for a traditional mortgage, a lender pays you. While you will eventually have to pay back the loan with interest, you are not required to do so until you leave the house. Best of all, you retain full ownership of the house the entire time you live there.
How You Are Paid
Depending on the type of loan you receive — based on your unique needs — there are several ways you can receive your funds. You can take the money as a lump sum if you need a substantial amount at once. Many individuals opt for monthly advances to spread out the distribution. This is a good option if you need liquid assets for ongoing expenses. Another choice is a line of credit with a lender. This way the money is available if you happen to need it. A major advantage of this option is that you are only charged interest on the money you use. If you do not need to take anything out, you won’t have to pay anything extra. You can also choose a combination of these payment options to best fit your needs.
The steps of receiving a reverse mortgage are pretty straightforward. First, you will meet with a loan specialist that will help you determine if it is a wise move for you and your situation. Next, a professional that is approved by the U.S. Department of Housing and Urban Development will talk with you to make sure you fully understand all the details about a reverse mortgage. This is to ensure full transparency. After this step, you will find a suitable lender and submit an application to them. If you are approved, an independent appraiser will determine the value of your home (which will be the basis of the amount of your loan). Next, all of your documents and application will be sent to an underwriter to make sure everything is correct and follows the law. Finally, you will sign your closing documents, and you will have your funds available in the next few days.
Contact Us To Learn More About Reverse Mortgages
We are happy to work with you to help determine if a reverse mortgage is the best option for you. Family Home Loan Texas was founded by loan originator and long-time mortgage professional Rob Bramer. Rob has helped clients secure the loans they need both locally and nationally and can help you get the loan you need to live life on your terms. Call 1-800-990-LEND (5363) to speak with Rob about reverse mortgage loans.