If you are a homeowner and at least 62 years old, you may be eligible for a reverse mortgage or home equity conversion loan (HECM). This loan allows you to borrow money from your home equity as tax-free income, which can help you during retirement, home repairs, and other financial needs. This can be a helpful option for many individuals, but there are a lot of misconceptions about this type of loan. In today’s blog, your team at Family Home Loan in Frisco, TX, is here today to help you understand the truth about reverse mortgages.
You Have To Outright Own Your Home
You do not need to own your home in full in order to take out a reverse mortgage. To find out if you qualify for an HECM you should first meet with an experienced loan specialist. They can give you a detailed overview of information as well as counseling, so you understand the terms of the loan. After this, you can apply for a loan. Our team is here for you every step of the way if you have any questions.
Your Family Members Can’t Be Willed Your House
Some people may be hesitant to take out a reverse mortgage out of worry that they will not be able to pass their home to a loved one. However, if you have it stated in your will or other official documents, your loved ones will still be able to inherit the home. The important aspect to keep in mind is that once your loved one has inherited the home, they will need to decide whether to pay off the loan or sell the home. Our team can discuss these options with you in more detail so that you can best understand the process.
You Can Only Use It To Supplement Emergencies
Many people believe that you can only take out a reverse mortgage to help pay for emergencies that may come up. For instance, you may only consider a HECM loan if you unexpectedly lost your job or need to repair your roof after a major storm. However, this is a common myth. In truth, you can use a reverse mortgage for various reasons. One common use is to help supplement your retirement income. When you retire, you may take a significant pay cut as you get used to not working. A reverse mortgage can help you ensure your bills are covered and you have extra funds. You may also use an HECM loan for medical expenses, paying for college, and more. You can talk to our team to learn more about your options.
Talk To Our Team To Learn More
We understand that home loans and reverse mortgages can seem complex. Our team is here for you every step of the way during this process. You can call Family Home Loan Texas in Frisco, TX, today at 214-447-7575.