How A Reverse Mortgage Is Paid To You

The questions people have about reverse mortgages can range from matters of how to qualify to concerns about what an agreement really involves. As you look into the process, you can find that this is a kind of loan that lets you turn your home equity into something you can spend as you see fit. You can also find that you still own your home, and you can even retain the right to sell it or pass it onto an heir!

FHL Texas is prepared to help you learn about the different benefits of reverse mortgages. We can also help you understand how they are awarded and what terms you can set. The right arrangements can help you in exciting ways. Whether you have immediate plans for what you receive or you want to secure your loan now in preparation for the future, we can make sure your reverse mortgage and terms are truly right for you.

A Reverse Mortgage Can Provide Long-Term Support For Qualified Borrowers

A reverse mortgage is a type of loan reserved to homeowners who are 62 and older, as well as those who have built up sufficient equity in the property where they live. If you fit the right qualifications, you can learn about how this option gives people exciting long-term advantages. For many, it will be a key part of their overall retirement plan. Others can look to their reverse mortgage to take on matters like medical costs, home renovations, travel plans, and more!

FHL Texas can do important work to help people learn how this loan can help them. We can also make sure you understand the different options that are available to you. In addition to having access to different types of reverse mortgages, there are varying pay structures you should know about. There is also an option to create a special fund that takes care of your remaining home costs automatically, which means you no longer have to keep up with them.

You Can Choose What Type Of Loan You Want And How It Will Be Distributed

Just as homeowners approach the reverse mortgage process with different property values and priorities, there are different kinds of loans that are available to you. The traditional reverse mortgage, also known as a Home Equity Conversion Mortgage (HECM), is a government-insured loan that lets you borrow against the equity built up in your property. Recent rule changes have opened up new options, and residents of Texas can now qualify for Equity Elite and Equity Elite Zero loans. These come with lower closing costs, and there are properties that do not qualify you for a HECM that can qualify for these new options.

We can help you understand what you gain from choosing one type over another. We can also talk to you about how your loan should be paid. There are plans that provide more immediate funds as well as those that pay consistently from month to month. You can also explore the advantages of taking your loan as a line of credit. For those who have no immediate plans for the funds, this creates an opportunity to keep growing on the initial sum you received in order to boost how much money is available to you!

Taking A Reverse Mortgage Line Of Credit

By choosing a reverse mortgage line of credit, you have the ability to gradually grow the amount you receive from your lender. The more time you wait to draw from the funds that are given to you, the more they will grow. Your terms and the interest rate set for your line of credit will be fixed in place, which means you do not have to worry about market changes affecting that rate of growth. In other words, this sum will rise at a protected rate until you need it, helping you ultimately access even more than your initial agreement!

Choosing A Loan That Lowers Your Closing Costs

Because Equity Elite and Equity Elite Zero loans come with lower closing costs, borrowers who worry about how much they will have to pay at the time their reverse mortgage is secured can have an easier time with their terms. To make this upfront cost easier to absorb, we can talk to you about arranging for the money owed to come from the sum that you receive. Because you have these options, it becomes easier for you to take advantage of the equity you have built at a time when you have more immediate needs for cash support.

Your Reverse Mortgage Can Take Care Of Your Ongoing Home Costs For You!

While your reverse mortgage will need to take care of any money you still owe on your mortgage, there will be other costs related to your home, like taxes, heating, and HOA fees, that you will remain responsible for. By setting up a Property Charge Set Aside, you can actually use a portion of your loan to consistently pay these costs for you, so you will no longer have to keep track of them. Whether this is a means of helping you keep up with obligations that have become hard to track or just a way to enjoy peace of mind, it is a welcome example of how your reverse mortgage can make your life easier!

Talk To FHL Texas About Your Reverse Mortgage Options!

By exploring your different options for reverse mortgages and their terms, you can find out just how helpful this kind of loan can be! If you would like to discuss your eligibility or the different ways in which your home equity can help you, we are ready to provide expert guidance. For more information about the different ways in which you can receive your reverse mortgage, contact FHL Texas today at 1-800-990-LEND (5363).