When it comes to your retirement, you should put time and effort into planning when to leave the working world and determining how much you will need saved in order to do so. Unfortunately, even with careful planning, many retirees will have at least one significant, unanticipated cost to address. In some cases, the amount of money they need to spend in these situations can jeopardize their overall retirement plans! One way to make sure you have the financial stability you need to truly finish working is to take out a reverse mortgage, a kind of loan that will see you receive consistent payments to be used as you see fit. FHL Texas has experience working with homeowners who are approaching the end of their working years who want to make sure they enjoy true financial stability. We can help you understand what terms and loan types are available, and we can help you confirm that a reverse mortgage will work with your retirement plans before you make any commitments.
Life After Retiring Can Be More Expensive Than You Anticipate
As you set aside money from one year to the next, you can grow confident that you are ready for retirement. Many people reach the end of their time working with excitement, but their retirement plans can become compromised by unexpected home repairs, medical bills, and other costs that they did not anticipate. What can you do to protect yourself against this? For homeowners in qualifying properties aged 62 and older, a reverse mortgage can offer significant help. Unlike a conventional loan that requires steady repayment, a reverse mortgage will continue to pay you on a monthly basis. This added income can help you cushion your savings and prepare for the unexpected. It can also give you added funds to work with if you have exciting post-work plans that you want to engage in.
A Reverse Mortgage Can Help You Remain Financially Secure
Reverse mortgages are loans that homeowners can receive by borrowing against the equity they have built up. Some conditions are placed on these loans—in addition to requiring that everyone on your title be at least 62 years old, your property needs to meet certain qualifications, and you should be able to demonstrate that you will be able to keep up with all remaining costs associated with your home. While you do not need to have your property paid off before you can qualify, you will need to have at least 50% equity in your property and be prepared to close out an existing loan.
By receiving this support, you can arrange to have money paid to you on a consistent basis for an extended length of time. You can use that money as you see fit, and you can even set aside some of it as a Property Charge Set Aside that automatically covers housing costs like utilities, HOA fees, and more. The added support that comes with this can help you stay secure if unexpected costs affect you, but it can also mean the difference between a conservative retirement and one that lets you enjoy more travel and more leisure once you are out of the office.
You Can Use Your Loan To Cover A Wide Range Of Expenses
You have freedom in how you spend your reverse mortgage. If you choose to renovate or improve upon your home with the funds, you are free to do so, and you can even find that investing in your property in this way helps you raise its value and your overall net worth. It can also support your plans for vacations, hobbies, and any other interests you want to explore after retirement. Of course, it can also be a way to handle everyday costs while you leave your retirement funds untouched. Taking this approach can help you keep a larger nest egg set aside so that you can cover an unexpected and costly life event.
Learning About Your Different Reverse Mortgage Options
There are different options for reverse mortgages that are available to qualifying borrowers. A change in Texas laws has opened up access to loans that are not government-backed. Equity Elite and Equity Elite Zero loans come with lower upfront costs, and they can provide larger payouts to homes that boast higher property values. In addition to changing what kind of loan you receive, you can explore different payout terms, including terms that provide your loan in the form of a line of credit.
How A Reverse Mortgage Line Of Credit Grows The Amount Of Money You Can Access
If you are interested in the support of a reverse mortgage but do not have a short term need for the money you receive, a line of credit can benefit you. That credit line, established with your lender, will keep growing as it sits untouched. By the time you do withdraw funds, you can find that you now have access to more than you were initially awarded! Reverse mortgage credit lines grow at fixed rates, which means falling interest rates will not change its growth.
Talk To FHL Texas About The Benefits Of A Reverse Mortgage!
Through a reverse mortgage, homeowners who are preparing for retirement can protect themselves and enjoy a greater degree of financial security. If you would like to learn more about how this kind of loan can benefit you, call FHL Texas at 1-800-990-LEND (5363).