How Timing Affects Your Reverse Mortgage

When you reach the age of 62, and your mortgage status makes you eligible, you can take advantage of the equity in your home through a reverse mortgage. Homeowners take advantage of this for different reasons: Many will look to it as a way to support their retirement, but it can also help with home renovations and repairs, medical costs, and more! In some cases, people who qualify will look into receiving this loan before they have a definite plan for its use. When market conditions are favorable, this can lead to better terms and a bigger sum. It can also help you make more in the long term by taking a reverse mortgage as a line of credit that will keep growing until you use it.

FHL Texas is ready to answer your questions and help you understand how a reverse mortgage can benefit you. With guidance throughout the application process and important information about the different kinds of loans available to you, it becomes easier to make the right choice. Whether you want to know if now is the right time for your reverse mortgage, how you can use your funds, or what to expect after it is received, we can help!

Should I Hold Off On A Reverse Mortgage Until I Feel Certain I Need The Money?

Homeowners who qualify may like the idea of a reverse mortgage, but they can be less than certain about when to approach taking one out. The trouble with waiting until your need is apparent is that the process may take longer than you expect, or you may find yourself applying at a time when home prices are down and interest rates are unusually high. Securing your reverse mortgage when market conditions are favorable will help you take a larger loan. You can also take advantage of that early receipt by taking what you receive as a line of credit. The credit line grows at a fixed rate, and you only need to worry about interest on money that you draw from what you received!

A Reverse Mortgage Provides Cash Without Monthly Costs

Your reverse mortgage is a type of loan that does not require you to make monthly payments. Because of this, you will not have to worry about taking it early and paying off portions of it before you start to make use of it. When it comes to what you receive, you can be pleasantly surprised at the lack of obligations. You can set terms that use the loan itself to pay off closing costs, and you can actually reduce your other monthly obligations by setting up a Property Charge Set Aside (PCSA) that takes care of HOA fees, property taxes, and other regular charges.

Using A Reverse Mortgage Line Of Credit

There are different ways in which you can receive your money from your reverse mortgage. Lump sums and monthly payments can be accepted, but you can also take out what you receive as a line of credit with the borrower. If you take out your loan early, this can pay off for you in welcome ways. The interest will keep building, which means the amount that you initially received will keep growing before you actually take out the money. This means that when you are ready to draw those funds, the sum will be even larger than what you were awarded at the time your loan was completed!

We Can Help You Thoroughly Weigh Your Options For Making Use Of Your Home Equity

Learning about the reverse mortgage process and guidelines will be important. To make sure that prospective borrowers have the right information and know what kind of agreement they are entering, we will provide information and guidance upfront, and you will also meet with a Housing and Urban Development-approved counselor who will help you make sure that this is the right choice for you. As exciting as it is to know that you have a way to turn your home equity into usable funds, you should not enter a reverse mortgage lightly. Your home loan needs to be sufficiently paid down or paid off for you to qualify, and you should be ready to remain in your home for the life of the reverse mortgage to truly enjoy its benefits.

New Reverse Mortgage Types Are Available For You To Use

Texas has opened up the reverse mortgage market to allow for more than just the traditional Home Equity Conversion Mortgage (HECM). In addition to this government-supported loan, borrowers in the state can now look into Equity Elite and Equity Elite Zero loans. These offer terms that have lower closing costs, and they can also provide higher sums to people with higher value homes!

Talk To FHL Texas To Learn How A Reverse Mortgage Can Benefit You!

When you start looking into the benefits of a reverse mortgage, you can see benefits in the long term, but your first instinct may be to wait. What you should be mindful of is how waiting until this loan feels necessary can mean waiting until market trends are not favorable. In addition to helping you make the choice to pursue a reverse mortgage at the right time, we can help you understand how to take your initial sum and grow it as a line of credit, leading to more benefits from acting early. If you would like to find out more, call FHL Texas today at 1-800-990-LEND (5363).