Your Reverse Mortgage And Your Home Title

By securing a reverse mortgage, you will be able to secure significant money and see direct value from your home equity. Borrowers who meet the qualifications for this kind of loan can enjoy extra retirement support as well as assistance with monthly costs, savings to take on unexpected costs, and even the necessary finances to renovate and repair their living space. You might be surprised to learn that you can use the money to make changes to your property that you wish to see. People sometimes assume that by taking a reverse mortgage, they are losing their claim to their home, and that they are giving away their title. This is one of many myths that FHL Texas can help dispel as we provide useful information on the process of borrowing against home equity!

Will A Reverse Mortgage Impact My Claim On My Home?

A home is often the most valuable asset that someone has, but the equity that it carries is not something that you can use like cash. However, a reverse mortgage provides a loan based on that equity, which means you can receive money to be used at your discretion thanks to ownership of your property. What some people assume is that by taking a reverse mortgage, that ownership changes hands. You should know that you maintain the title to your home when you take a reverse mortgage, and you can remain there long after you have received your funds. You can even sell the property at a later date, though this will require you to pay off the loan.

Myths About Reverse Mortgages Can Scare People Away From A Good Opportunity

There are different myths about reverse mortgages that can make people uneasy. The loss of the home title can be a significant one, but it is not the only reason people hesitate to even ask how this kind of loan can help them. Other concerns people have can include:

  • Worries about steep closing costs that undermine the value of the reverse mortgage
  • Limited access to funds
  • Taxes that will be levied on the reverse mortgage
  • The inability to pass the home on to your heirs

Counseling is important to the process of securing a loan. In addition to meeting with us, you will speak with a counselor approved by the Federal Housing Administration. During that session with the counselor, you will learn more about what you can expect from a reverse mortgage, and you will also enjoy dedicated guidance to confirm that this is truly the right step for you to take.

Home Ownership After You Secure Your Reverse Mortgage

Simply put, the property on which you take your reverse mortgage is still yours. Your name remains on the claim, and you retain the same rights that you had before your application was processed. You will also remain responsible for monthly and yearly costs that are not associated with an initial mortgage. However, you can actually make these easier to manage by setting up a PCSA (Property Charge Set Aside) that automatically disburses money from your reverse mortgage to all relevant parties on your behalf. This reduces monthly bills that you need to track and helps ensure that you have what you need to keep up with the cost of your property through the years!

We Provide Thorough Guidance And Counseling Before You Take Out A Loan

Counseling and support are important to any significant financial decision. While beneficial, a reverse mortgage is a significant responsibility, and there are certain qualifications that you need to meet to even apply. Our sessions with you can help you understand what to expect as well as the terms you can look forward to receiving. When you meet with your FHA-approved counselor, you can go more in depth about your current monthly obligations, your ability to remain in the home, and even whether a commitment like this is one you are prepared to enter.

Beyond helping you understand how a reverse mortgage can benefit you, we are ready to talk with you about what types of loans are available. Beyond the traditional HECM (home equity conversion mortgage) option, you can look at the benefits of Equity Elite and Equity Elite Zero. These options can reduce closing costs, and they can make more funds available to people whose homes boast higher values!

The Advantages To Taking A Reverse Mortgage Early Into Your Eligibility

Because you have the option of taking out your loan as a line of credit, you can actually gain more through securing your reverse mortgage early into eligibility. This is because the credit line features fixed growth over time and will become progressively larger the longer you hold out before using it. If you feel that a reverse mortgage will be helpful in the future but not at the moment, consider this option and its advantages when it comes to your future income and needs!

Talk To FHL Texas About The Process For Securing Your Reverse Mortgage!

The myths surrounding reverse mortgages can give people pause, and that can mean they never even inquire about what the right loan can do to support them through their retirement. One thing you should know is that even after you accept your reverse mortgage, your home title remains in your name, which means you are both secure in your home and maintain the same level of control over it that you had before making your application. FHL Texas is happy to help you understand what is and is not true about reverse mortgages and their terms. We can also help you in a number of different mortgage matters, including matters of investment real estate and the purchase of a second home! To find out more about how we can help you, call FHL Texas at 1-800-990-LEND (5363).