Do you want a $0 mortgage payment?  The Reverse Mortgage is a loan insured by the Federal Housing Administration (FHA), which is also referred to as a HECM and can help you eliminate your current mortgage payment and/or take cash out from the equity in your home. You will NEVER have a mortgage payment with a HECM for as long as you live in the home.  Without the burden of a monthly payment, you can free up cash to cover other important expenses and can afford to stay in the home you love and age in place.

 

Reverse Mortgage Highlights:

1. In Texas borrowers must be over 62 years of age
2. The home must be borrowers’ primary residence
3. You will always have a $0 mortgage payment
4. Qualifying for a Reverse Mortgage is much easier than for a traditional (conventional) loan because you won’t have a mortgage payment
5. Borrowers continue to own their home and can refinance the Reverse Mortgage in the future, or it can be paid off like any other traditional (conventional) mortgage
6. Borrowers are still responsible for property taxes, homeowner’s insurance, and any homeowner’s association dues
7. Must keep the home in good repair
8. Any cash out from the Reverse Mortgage is tax free

 

Reverse Mortgage Home Equity Line of Credit (HELOC):

65% to 70% of all new Reverse Mortgages in 2022 were Reverse Mortgage HELOCs. The Reverse Mortgage HELOC works well for borrowers who do not have a mortgage on their home or have a low mortgage balance.  The HELOC is very flexible, and borrowers have the option of taking as much money as they wish at initial funding and then accessing the funds later as needed.   The available HELOC balance is guaranteed to grow monthly for as long as you live in the home. This growth compounding can be life-changing in your retirement years and the HELOC is becoming a widely accepted financial planning tool.

 

Reverse Mortgage Home Equity Line of Credit (HELOC) Highlights:

1. HELOC balance is guaranteed to grown monthly for as long as you live in the home
2. Funds can be borrowed, paid back, and borrowed again in the future
3. Unborrowed funds in the HELOC do NOT incur interest
4. In Texas borrowers must be over 62 years of age
5. The home must be borrowers’ primary residence
6. Qualifying for a reverse mortgage HELOC is much easier than for a traditional (conventional) loan
7. Borrowers continue to own their home and can refinance the Reverse Mortgage HELOC in the future, or it can be paid off like any other traditional (conventional) mortgage
8. Borrowers are still responsible for property taxes, homeowner’s insurance, and any homeowner’s association dues, and must keep the home in good repair
9. Any cash out from the Reverse Mortgage HELOC is tax free