There are a few eligibility requirements to qualify for a reverse mortgage. The biggest one is being 62 years of age or older. Another is that you must live in your primary residence — the one you are taking the reverse mortgage out on — for most of the year. A point of confusion for many is if they are eligible if they still owe money on their house. In today’s blog, Family Home Loan Texas answers this question and discusses other important details to know about reverse mortgages.
Can I Qualify If I Owe Money On My Home?
Simply put: yes, you can. Major life events that require significant financial flexibility don’t just affect those who own their homes outright; this is to say that the benefits of reverse mortgages can and should be available to anyone who needs them. With this in mind, there are a few things to consider when moving forward with this type of loan. For starters, if you still owe money on your mortgage, you will have to use the reverse mortgage — or other funds — to pay off the rest of the loan before you receive your funds. For example, say you owe $50,000 on your mortgage, and you qualify for a $100,000 reverse mortgage, you will use $50,000 to pay off the existing one, and then you will receive the other $50,000.
Is It Worth It For Me?
If you do still owe money on your house, you may be wondering if it is worth it to go through with this kind of loan. Of course, only you can answer that, given your own unique financial situation, but there are several things you should consider. First, how much will you receive once you pay off the existing loan? You will have to see if the amount is suitable for your needs, especially given the interest you will have to pay on the amount once you leave the house. As with all mortgages, there are closing costs you need to factor in as well. You will also need to decide what sort of interest rate you want to go with —fixed-rate or variable — because this will determine how you receive your funds. Again, everyone has different needs, so you will have to decide what is best for you. Luckily, all of this will be addressed when you begin the process of applying for and receiving a reverse mortgage.
Contact Us To Learn More About Your Eligibility
We are happy to help you through all steps of this process. 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 the ways a reverse mortgage can factor into your financial planning.