Avoiding Reverse Mortgage Misinformation

Do you really have the right idea about reverse mortgages? Myths around what they “actually” require can lead eligible borrowers to miss out on important financial support as they near retirement age. Fortunately, you can count on FHL Texas to clear up misinformation and provide more details on what these loans can actually do for you!

There are different forms of reverse mortgages, and they can provide payment in different ways. For those who qualify, they make it possible for homeowners to make use of their home equity in a way that provides them with money they can spend as they see fit! You maintain the title to your home, and you can enjoy real freedom in how you make use of what you receive. Thanks to new rules regarding what kinds of loans Texas homeowners can receive, there are even ways to take out a reverse mortgage while limiting closing costs. Before moving forward with the loan application, we provide important information to borrowers, and we arrange a meeting with an FHA-approved counselor to discuss if a reverse mortgage is truly right for you.

Myths About Reverse Mortgages Can Make People Hesitant To Apply

For homeowners over the age of 62 who qualify for a reverse mortgage, a loan can be of significant value at a time when access to more money can be vital to retirement plans. However, incorrect assumptions about what a reverse mortgage requires, or what one will provide, can lead to people missing out on the benefits of a loan. Rather than let myths about reverse mortgages stand between you and a better financial situation, you can meet with an expert at FHL Texas to discuss what the terms would involve, what you can do to apply, and what you can gain from this kind of loan in the long term.

How Do I Qualify For A Reverse Mortgage?

There are set qualifications for a reverse mortgage that have to be met before you can move forward with an application. The borrowers whose names are on the title must be at least 62 years of age. While you do not have to own your house outright, you should have more than 50% equity built up, as your loan will need to pay off the remainder of the current mortgage. These loans are only eligible for single occupancy homes, qualifying condominiums, townhomes, and two-to-four-unit homes where you are the primary owner. You will not be able to apply for a second home or vacation home.

Your Reverse Mortgage And Your Home Title

Receiving a reverse mortgage does not mean you have to give up your home title! You remain the owner of the property and maintain the control to renovate and change it as you see fit. One thing to keep in mind is that you should plan to remain in the home after retiring. While you can sell, doing so will mean that you have to repay the loan and not enjoy its full benefits.

Are There Limits On How You Can Use Your Reverse Mortgage Funds?

While many people who take out reverse mortgages do so with the intention of using funds to support retirement, there are no rules in place that require this. You can use what you receive to plan a dream vacation, renovate your home, or make new investments. Ultimately, this is a way for you to enjoy the equity that you have built up over time, as you can use it to gain access to a kind of financial support that lets you take on projects and spend as you see fit.

Should I Wait To Apply Until I Have An Immediate Need For The Money?

You can actually make more from your reverse mortgage if you do not have an immediate need for it when you take yours in the form of a line of credit. That credit will keep growing at a fixed rate until you are ready to draw from it, so it will be larger than it was at the time of closing when you hold off on using it! Because of this, there are real advantages to starting the process even if you are not sure how the money will be used.

You Can Use Your Reverse Mortgage To Cover Closing Costs And Remaining Home Costs

Your reverse mortgage can help you cover a number of financial obligations, including the closing costs associated with the loan itself! Because you can use what you receive to cover closing costs, you can have an easier time applying while worrying less over upfront expenses. You can also reduce those closing costs by choosing an Equity Elite or Equity Elite Zero loan, two new reverse mortgage options that Texas homeowners can now access.

While people who receive a reverse mortgage have either paid off their mortgage already or used their funds to clear it, different home costs remain. With a Property Charge Set Aside, you will take a portion of your loan and dedicate it to costs like homeowners’ insurance, HOA fees, and other fees that you continue to pay. Since these different charges will be automatically paid on your behalf, you no longer have to worry over them!

Talk To FHL Texas About The Benefits Of Securing Your Reverse Mortgage!

Different ideas about reverse mortgages can make eligible borrowers uneasy about them, and that can stop them from looking into a valuable financial resource. By talking to FHL Texas about your options and what to expect from both the application process and the receipt of a loan, you can find that this opens you up to more retirement support, easier management of your home bills, and more! We provide important information on the different types of reverse mortgages that are available, and we can help you to fully understand what you should expect if you decide to take one. For more information about the reality of reverse mortgages, please call call FHL Texas at 1-800-990-LEND (5363).