Homeowners who are at least 62 years old can potentially receive significant financial assistance from a reverse mortgage. At this stage in life, many people will be thinking about what they need to do to have a secure and enjoyable retirement. You can certainly look to your reverse mortgage to help with this, but the loans available to you help with more than just preparing for life after working. Many people express interest because they have different goals in mind, such as a plan to make certain investments, or an interest in renovating their home.
FHL Texas has helped many people gain a better understanding of what a reverse mortgage can offer them. We provide assistance throughout the application process, starting with important early reviews to make sure this is truly the right step to help you with your goals. Beyond helping with the application itself, we can talk to you about what different forms of support are available and how they can best help you in the long term.
Planning For Retirement And Other Life Events
Borrowers who qualify for a reverse mortgage will be at least 62 years old. In other words, the people who are eligible are typically near or at their expected retirement age. If you are preparing to step away from the workforce, your loan can help you secure funding for an extended length of time where you might feel economically vulnerable. With that said, there are many other life events that you can look forward to at this age! You may be eager to improve your financial health through investing, or you can be eager to travel more frequently. A reverse mortgage can help with these and other exciting goals as well as with more straightforward retirement plans.
Early Considerations For Someone Interested In A Reverse Mortgage
You maintain control of your title when you take out a reverse mortgage, which means your home is still yours. The option is still open for you to sell it if you choose, and you can still arrange to leave it to an heir after you pass. Many people who seek a reverse mortgage can use part of the funds they receive to make changes to their home to make it more comfortable. With all this said, it is important to note that you should intend to stay in this residence for the life of the loan, as your decision to sell it will require you to close out your loan.
Beyond needing to be the minimum age to qualify, there are certain rules about what kind of property you live in, whether you count as a permanent resident, and how successful you will be in paying remaining monthly obligations on the property. You can actually use the funds you receive to pay those funds, making them less of a concern. In fact, with a Property Charge Set Aside, you can establish automatic payments that will cover those other charges on your behalf!
The Funds You Receive Can Be Put To Many Uses
While reverse mortgages can be put toward retirement plans and set aside in anticipation of future medical costs, you have the freedom to spend what you receive in other ways. Beyond thinking about how your reverse mortgage will keep you secure after you retire, you can look at the freedom to explore and enjoy life granted by the money you receive. Better and more frequent vacations, overdue home renovations, and more can be obtained when you have this extra support. It can also be nice to enjoy the peace of mind that comes with a Property Charge Set Aside, as it removes the need for you to keep up with regular bills and taxes related to your property.
Making Sure Your Home Is Eligible For A Loan
You can only take out a reverse mortgage on a primary residence, which means a second home or vacation home will not be eligible. It is possible to secure a loan if your property is a two-to-four person residence as long as you are one of the residents. Beyond this, you need to be in a home which will retain value over time, and you need to be able to cover the bills that remain.
For townhome and condominium owners, loans can be available. It is important that you confirm that your condominium is FHA-approved if you want to take out a conventional HECM loan. However, if you are pursuing an Equity Elite or Equity Elite Zero loan, there are exceptions that can still receive approval.
The Benefit To Applying Before You Have An Immediate Need For Your Funds
Because the option to take out your loan as a line of credit with your lender is available, you can actually generate more money from your reverse mortgage if you take it out before you need it. The credit line you establish will keep growing at a rate that is pre-set and not subject to falling interest. Until you remove funds, that original total will keep growing, which means you have more to draw from than what you originally received.
Contact FHL Texas Today To Learn More About The Value Of A Reverse Mortgage
As you explore your different financial opportunities as a homeowner, you can find that a reverse mortgage offers many exciting benefits. To learn more about what yours can do for your retirement plans and other life goals, please call FHL Texas today at 1-800-990-LEND (5363).