A reverse mortgage is something many homeowners seek out when they want to make sure they have everything they need to retire comfortably. Does this mean that the loan is only intended to help people transition away from work? You should know that you have real freedom when it comes to the money you gain from your reverse mortgage. You can use it to have more money available after you retire, but you can also use it to fund home renovations, support friend or family members in need, or enjoy more vacation time!
FHL Texas is ready to help you as you explore the benefits to securing a reverse mortgage. We provide early guidance before homeowners have committed to anything, so we can help you make sure this is the right decision for you and learn what you can do with the funds that you receive. Our guidance can also help you explore your options—there are several ways to collect on your reverse mortgage, and recent changes in Texas law have made more types of these loans available.
Retiring With The Right Financial Support Can Offer More Freedom And Fun
The thought of retiring can be thrilling, but it can also be intimidating if you are not sure you have enough saved. Many will look to a reverse mortgage to help with this. The loan borrows against the equity that you have grown over the years by paying the mortgage on your home. Unlike other loan types that provide a certain sum and then require regular payments, you are not required to pay back what you receive in monthly installments. You can use what you borrow as a new type of steady income, one that helps you cover your basic necessities and pay your bills. However, you can also see different uses for what you receive, opening you up to a more fun and active post-work life than you thought possible!
You Have Control Over How You Use Your Reverse Mortgage
You have freedom in what you use your reverse mortgage to pay for over the years. For some, it is a good way to set aside money in the event a medical emergency must be covered. For others, it is a chance to pay for home renovations, raising your property’s value and refreshing your living space. Because you can decide how you use what you receive, you can make this kind of support something that fits your plans rather than something that sets them.
The Long-Term Benefits Of Your Loan
In the long term, a reverse mortgage will provide regular support to you and your household at a time when you are not receiving a monthly income thanks to your employment. This can be a sufficient long-term benefit for many, but it is just one of several that you can discover after your loan is secured. You can actually make your monthly costs easier to manage in another way thanks to your reverse mortgage. A Property Charge Set Aside lets you designate a portion of your loan to provide automatic coverage for home-related expenses like utilities, HOA fees, and more. This means you have less to keep track of, and you can be certain these obligations are being met.
Your Reverse Mortgage Options May Surprise You
There are different ways that loans can be paid, and there are actually different kinds that are now available to Texas homeowners. Updated state laws concerning reverse mortgages have made Texas homeowners eligible for Equity Elite and Equity Elite Zero loans. This is welcome news for people who own homes with higher values, as they allow for higher borrowing; they also make certain property types eligible that were not before. Another benefit is that they come with fewer initial costs, so they can feel more accessible.
Your options also extend to how your sum is paid out to you. You can choose to receive more at the start of your loan if you have more immediate plans for what you receive. However, if you have less interest in using your reverse mortgage now, taking yours out in the form of a line of credit can help you because that credit line will keep growing at a fixed rate until you borrow against it!
Unsure If This Is The Right Solution For You? We Provide Counseling Before You Commit
We work closely with potential borrowers, and we provide time and information for you to review and determine if this is really the right solution for you. In addition to our counseling, homeowners who qualify will meet with an FHA-approved independent counselor. Having this review will help you ensure that you are making the best decision for your household before you have made any permanent commitments.
Talk To FHL Texas About The Support You Can Receive From A Reverse Mortgage
Because they have the opportunity to secure a reverse mortgage, many homeowners can find they have more financial support available to them, as well as more freedom, than they realized! For more information on the control you have over your reverse mortgage, and the kinds of support you can receive, call FHL Texas today at 1-800-990-LEND (5363)!