If you are like many homeowners in North Texas, then you have a significant portion of your net worth tied up in your real estate. While the housing market has long been seen as a safe and stable way to grow your money, this approach leaves you without the ability to use your money when you need it. For those who have reached the age of 62, there is an additional tool available to help with financial flexibility called a HECM loan form of a reverse mortgage.
Here at Family Home Loan Texas in Frisco, TX, we can help you to better understand your options in reverse mortgage loans. These operate a little differently than traditional home loans, helping you to convert your existing home equity into capital that you can use for a variety of purposes. HECM loans are a specific form of this type of loan, and it brings you decided advantages through the regulation of the Federal Housing Administration. To learn more about reverse mortgages, follow along with our blog and give us a call to schedule a time to meet!
How Do Reverse Mortgages Work?
With a reverse mortgage loan, you do not have to pay a monthly bill, like with other home loans. Instead, you can receive cash for your home’s equity, and then you can pay it off when you decide to leave the home. Reverse mortgages can be a beneficial solution for seniors looking to boost their retirement account.
There are a few common misconceptions about this process, so it is important to reach out to a trusted source of information before you make your decision. For example, some people believe that the bank holds the deed to your home, but in actuality, you retain ownership of your property until you decide to move on. Speak with a knowledgeable financial advisor to see if a reverse mortgage can help you to enjoy your retirement.
A HECM Loan Gives You The Security Of The FHA
It is important to remember that there are multiple forms of reverse mortgage. One of these, known as a HECM loan, is insured by the Federal Housing Administration, giving you an added level of security. These are only available to homeowners who have reached the age of 62, and they have a variety of payment options. HECM loan options bring you a higher loan limit than with some other forms, and they also tend to offer lower interest rates.
Find Out More With FHL Texas!
If you want to learn more about the ways that seniors are converting their home equity into cash, our team is here to help. Give us a call today at FHL Texas in Frisco, TX at (214)447-7575!