You have probably heard the term “reverse mortgage” quite a bit, but you might not have a full grasp of what it entails. Essentially, it is a way for you to free up spendable income by leveraging the equity you have in your house. If you are aged 62 years or older and have paid off most of your mortgage, you can take out this type of loan and receive a lump sum, monthly payments, a line of credit, or a combination of these. In today’s blog, Family Home Loan Texas explains the different ways you can utilize a reverse mortgage to make the most of your retirement and live on your own terms.
What Exactly Is A Reverse Mortgage?
In a traditional mortgage, you pay a lender each month to build equity in your home. In a reverse mortgage, you borrow a portion of your existing equity in your home as tax-free income, and the lender pays you. It is only available to those who are eligible — meaning individuals 62 years of age or older and have either paid off their home entirely or most of the way. While interest on this loan does accumulate, you do not have to repay any of it until you move out of your house. This means that you can both use the money you receive however you’d like and also have plenty of time to plan for paying it back. If you do decide to sell your house, you’ll simply pay off the reverse mortgage with the proceeds of the sale and keep the rest for yourself.
How You Can Use It
A reverse mortgage is a fantastic way to supplement your income and increase the cash you have on hand. Whether you choose a lump sum payment with a fixed-rate mortgage or monthly payments or if you’d prefer a line of credit, you can use this loan in any way that fits your personal needs. Many individuals take out a reverse mortgage to pay for unforeseen or uncovered medical expenses; the stress of an astronomical hospital bill can be devastating, and this type of loan can absolutely alleviate your anxiety. Others might choose to use the funds to complete much-needed renovations and repairs on their homes. A reverse mortgage can also be a great way to pay for a child or grandchild’s education. Remember, all the money you receive is tax-free, which is a major benefit. When you begin the process, a professional will walk you through every step, so you fully understand what it all entails.
Contact Us To Learn More About Your Reverse Mortgage Options
We are here to help you have the best possible retirement. We want nothing more than to help you achieve the utmost financial freedom. Family Home Loan Texas was founded by loan originator and long-time mortgage professional Rob Bramer. Rob has helped clients secure the loans they need both locally and nationally and can help you get the loan you need to live life on your terms. Call 1-800-990-LEND (5363) to speak with Rob about reverse mortgage loans.