As your intended retirement date nears, it can be reassuring to know that you have as much—or more—set aside to fund the life you want to live after you finish working. For many Texas homeowners aged sixty-two and older, a reverse mortgage can help ensure that money is available for a dream retirement! This kind of loan lets you take advantage of the home equity you have built up through years of paying off your property. The sum you receive comes without the requirement to pay back against what you have received, and you can even modify how you receive what you qualify for to best suit your needs.
It can be exciting to hear what a reverse mortgage can do for you, but it can also be difficult to know just what to expect when you pursue one. FHL Texas provides important guidance for people who want to learn more about this kind of loan. In addition to providing a no-cost consultation, we provide helpful reviews and information to make sure this is a step you want to take. After confirming it will suit your needs, we can proceed to help you secure the right reverse mortgage for your retirement!
Your Home Equity Supports Your Net Worth—How Can It Help You Pay For Your Retirement?
Homeowners will see their net worth rise gradually as they pay down their mortgage. Your property has significant value, raising your overall net worth. Of course, it can be hard to determine exactly how you can take advantage of that rising value when it comes to paying bills, medical expenses, and other costs. Is your status as a homeowner really going to help you with retirement? Will you need to sell the place you have lived, and hoped to stay in, to take advantage of the value you have generated over time?
Because you have the option of taking out a reverse mortgage, you can use your equity to your advantage by taking out a reverse mortgage. Unlike other kinds of loans, this one will not require you to make regular payments to offset what you are given. Instead, you will be able to receive consistent money over time while you still maintain control of your property title.
A Reverse Mortgage Gives You Money To Spend As You See Fit
By pursuing a reverse mortgage, you can receive a sum over time that you are free to spend as you choose. For some, that can mean enjoying a retirement that is packed with travel; for others, it means having the funds ready in the event health problems need to be addressed. Home equity is certainly important; it establishes your net worth, and that can help you improve your credit and qualify for other kinds of loans. However, having greater freedom to use the value of your property as you see fit can be vital at a time when you no longer expect to draw an income through your job.
What Makes Someone A Good Candidate For A Reverse Mortgage?
Borrowers interested in this kind of loan will need to be at least sixty-two years old. They also need to use their primary residence, as a second home or investment property will not be eligible for a reverse mortgage. In addition to single-unit homes, two-to-four person mixed units can also qualify when your name is on the title and you reside in one of those units. You can also be eligible with a townhome or an FHA-approved condominium. Thanks to the introduction of new loan types, certain people who previously failed to qualify in their condominiums can pursue a reverse mortgage.
While you do not need to own your home outright, you should have at least fifty percent equity based on the current value of your home. A mortgage that is still on the home needs to be paid off with the reverse mortgage to make you a good candidate. A review of the property’s condition and value can be necessary, and you will need to be in a position to continue paying the various costs associated with the house that are not tied to the mortgage.
Exploring The Different Loan Types And Terms Available To You
In addition to helping you confirm that you are a good candidate for a reverse mortgage, and that you are comfortable with the terms of what you are offered, we can give you important information regarding what loan types are available to you and how they can be paid. You can look into agreements that pay steadily from month-to-month as well as those that offer more upfront or at the end of your terms. A borrower who wants more than just financial support can enjoy the added assistance of a Property Charge Set Aside, which dedicates a portion of what they receive to automatically pay remaining home costs on their behalf. There are also new alternatives to the traditional HECM loan. Equity Elite and Equity Elite Zero are available to people who may not qualify for traditional loans, and they offer lower closing costs.
Talk To FHL Texas Today About How Your Home Equity Can Help You Secure A Reverse Mortgage To Fund Your Retirement
You can build up your savings and prepare for your retirement in different ways. One way you can help yourself is by building up equity in your home. Qualifying borrowers can take advantage of what they have built by pursuing a reverse mortgage and securing a kind of loan that provides reliable payments without the need to make payments back on what you receive. If you would like to learn more about how this can affect retirement plans, or about the advantages to reverse mortgages in general, please call FHL Texas at 1-800-990-LEND (5363).