Loans come in different sizes, and carry different terms. While one might be the perfect fit for your financial needs, many others will be ill suited to your circumstances and plans. Homeowners who are 62 and older are eligible for a type of loan known as a reverse mortgage. Recent changes in Texas law mean that in addition to the Home Equity Conversion Mortgage (HECM), you have access to Equity Elite and Equity Elite loans. While you can find the idea appealing, you may worry about the commitment you make, as well as how your reverse mortgage terms should be weighed against the amount of funds you receive.
FHL Texas can help you make a smart decision when it comes to taking out a reverse mortgage. One way we help is by making the different terms and loan options clear. With the right disbursement plan, you can find that your loan helps you with more than you initially anticipate. We can also help you understand how to use your reverse mortgage to lower your monthly obligations in ways that make budgeting easier and less stressful. By bringing your questions to us, we can help you better appreciate what this kind of support can offer, how you fit the loan requirements, and what you can do to see the most value in your terms.
Should You Be Worried About The Size Or The Terms Of Your Reverse Mortgage?
If you fear that your reverse mortgage is too small to cover your needs, or that it will take away too much control of your home, there are reasons to feel at ease. Loans come in different sizes, and Equity Elite loan options can help qualifying borrowers take larger sums. In addition, your loan terms will not wrest your property title from you. It will remain in your name throughout the life of your terms, and you will even maintain the right to sell if you decide it makes more sense to do so than stay in the property.
Your Loan Offers More Than Just More Funds During Retirement
People who are interested in a reverse mortgage can sometimes hesitate because they are unsure they qualify. While you will not need your home fully paid to apply for the loan, you will need at least 50% equity in the property at the time you do, and you will need to ensure that no other mortgages remain when you receive your support. With that said, a reverse mortgage can help you complete the current loan you are paying off so that you no longer have to keep up with monthly payments. It also allows you to turn your equity into a kind of financial support you can use to cover different costs. Owning a home has helped you build your net worth through the years; with the support of your HECM or Equity Elite loan, ownership becomes an opportunity to support yourself with that equity you accumulated.
A Reverse Mortgage Means No More Monthly Mortgage Payments
Many people who enter retirement need to think about both how they can cover their bills and how they can make sure they never miss payments. With your reverse mortgage, you can make monthly costs easier to keep up with in several ways. If you currently pay a mortgage on your home, your reverse mortgage will put a stop to this and instead provide you with regular funds. You can also arrange for the creation of a Property Charge Set Aside, an established fund that automatically pays other home-related costs on your behalf.
Why Your Continued Ownership Of The Home Matters
Because you are not borrowing against the total value of your home, you still benefit from the financial support of ownership. This gives you another important form of support in the event that new financial challenges arise in the future. It is important to also recognize that by taking out this loan, you are not giving up control of the property or your title. Everything remains in your name, which means you still have the freedom to pursue a sale if you decide to make different arrangements.
You Can Use A Line Of Credit To Grow What You Receive Over Time
The amount of money you can receive from a reverse mortgage can rise if you put off securing one. However, even if you do decide to pursue this support at the minimum eligible age of 62, you can do something to keep growing the amount that you receive. A reverse mortgage taken out as a line of credit with your lender will keep growing while you wait to take it out, and it will do so at a rate that is unchanging. If you take advantage of good rates to secure your loan, you can have terms locked in, which means no larger changes in the market will affect that growth.
Talk To FHL Texas About The Full Benefits Of Securing A Home Loan
Better information about reverse mortgages can help you decide if this kind of financial support is truly right for you. We are happy to help you understand what you can receive, what kind of terms you can arrange, and what your loan can ultimately do to help with retirement and other important financial matters. For more information on how a reverse mortgage can benefit you, call FHL Texas today at 1-800-990-LEND (5363).