Because they only have limited information—or they have the wrong information—some eligible homeowners never pursue a reverse mortgage. What can you lose by not looking at the benefits of this kind of loan? Many people who near retirement age start to wonder if they really have enough to support their post-work plans. Others may discover that unexpected medical costs and other expenses have cut down what they had set aside to support them.
With a reverse mortgage, you are able to borrow against the equity you have built up through the years you spent paying off your home. With this support available to you, it becomes easier to support yourself at a time when you no longer have regular income! FHL Texas has helped many people understand what a reverse mortgage could offer in terms of retirement support, securing funds for investment purposes, and more. We are happy to help you understand how a loan can be used to help you and what terms you should consider.
You May Be Overlooking An Important Form Of Retirement Support
A reverse mortgage is available to eligible homeowners who are at least 62 years of age. Because this is made available at a time when many are nearing their planned retirement ages, it can be an important windfall at a time when you prepare to go without your regular income. Letting worries or misinformation about what this kind of loan requires, and what it provides, can cause you to miss out on meaningful support. We provide no-commitment consultations where we can help you understand what a reverse mortgage can offer and how it can help you.
The Equity You Have Built Can Provide Financial Help
Your reverse mortgage is not awarded through the selling of your home; you borrow against the equity you have built in it through the years. Building equity by paying off your property over the years will help you grow your net worth. While this adds to your overall worth, equity is not something that you can freely spend. By borrowing against it, you can use it to support you at a time when you are not receiving a regular work income and want to make sure you have consistent support.
You Still Own Your Home After You Take Out A Reverse Mortgage
A home sale will fully take your property out of your hands. For some retirees, a sale is a smart decision. It can be a way to make money while looking for a smaller, more comfortable living space, or it can be a way to move to an area that is closer to family. However, many people would prefer not to leave the home they have established after they cease working. By taking out a reverse mortgage, you receive money thanks to your ownership of your home, but you do not sell it. Your name will remain on the title, and you still have the freedom to renovate and make changes as you see fit!
New Laws In Texas Have Made More Reverse Mortgage Loan Types Available To You
The anticipated initial costs of a reverse mortgage, or the assumption that there will be a low ceiling on what is awarded, scares some qualifying borrowers from pursuing this kind of loan. What you should know is that changes in Texas law have made homeowners eligible for Equity Elite and Equity Elite Zero. These are new loan types that come with lower upfront costs. They also provide options that include more initial funds and higher payouts for properties that boast higher values.
You Can Use Your Reverse Mortgage To Cover Monthly Bills
When you think about the impact a reverse mortgage can have on your finances, you should know that your loan can offer more than just monetary assistance. With a PCSA—a Property Charge Set Aside—you can have a set amount of the money you receive reserved for automatic bill payments. Any remaining costs associated with your home, such as your HOA fees, utilities, and more, will be covered on your behalf.
There Is A Benefit To Taking A Loan Before You Have An Immediate Need For The Funds
You may be open to taking a reverse mortgage after you start to experience life after retirement, but should you secure the funds that are available to you before this point? In doing so, you can actually receive a larger sum than you anticipate. This is because one of your options is to take your reverse mortgage as a line of credit with the lender. That line of credit grows at a fixed rate that is not affected by interest rate changes. For as long as you wait to draw from it, that sum you receive will keep growing, becoming larger and offering you more support!
Talk To FHL Texas About The Benefits Of A Reverse Mortgage!
People who could benefit from a reverse mortgage may not realize just how helpful one can be for them. In addition to making more money available to you when you retire, yours can help you manage monthly bills, help you renovate your home or prepare for unexpected life events, and generally feel better about life after work! If you would like to find out more, call FHL Texas today at 1-800-990-LEND.