3 Reverse Mortgage Questions to Consider

What is a Reverse Mortgage?

A reverse mortgage is a loan designed to allow seniors to draw upon the equity in their homes. Seniors can select to receive the loan proceeds either by a lump sum payment, by monthly installments, as a line of credit or as a combination of a line of credit and monthly installments thus providing income even after retirement. The reason this type of mortgage is called a “reverse mortgage” is because the money goes directly to the home owner instead of into paying for the home.

Eventually the money paid to the homeowner is repaid with interest, however the loan generally does not become due until the borrower passes away, sells the home, no longer maintains the home as the primary residence or fails to pay property taxes, fails to pay homeowners insurance or otherwise fails to comply with the loan terms.

Why should I get a Reverse Mortgage?

Getting a reverse mortgage is a big step and needs to be carefully evaluated. Many people have found that by taking a reverse mortgage they avail themselves of the equity they have built in their home.

Typically those who benefit most from a reverse mortgage are those who plan to stay in their homes over an extended period and have built a decent amount of equity in their homes. Also, the risk associated with a reverse mortgage is significantly lower than more traditional types of mortgages because you can never owe more than the value of your home.

Contact one of our professionals today to find out if you have enough home equity to make a reverse mortgage a good decision for you. If you have a good amount of equity in your home and you plan on staying there for an extended period of time then a reverse mortgage might be right for you.

How do I qualify for a Reverse Mortgage?

If you own your home and are over 62 years of age you might be eligible to apply for a reverse mortgage. The home you are thinking of taking the reverse mortgage out on must be your primary residence. There are some conditions to what type of home may qualify.

  • Typically single-family units are accepted by all programs
  • Condominiums
  • Manufactured homes and planned developments can qualify for some programs
  • Most mobile homes and co-ops are generally not eligible

We can help you figure out if you’re eligible for a reverse mortgage. Call us today! If you're ready to get started on a reverse mortgage apply now!

Lonestar Mortgage of Texas

20501 Katy Freeway, Suite 100G
Katy, Texas 77450
Phone: 281-492-9158
Fax: 281-946-5108
NMLS: 311730
We lend in the following states: Texas
Broker, NMLS #311730

Figure: 7 TAC §80.200(b) "CONSUMERS WISHING TO FILE A COMPLAINT AGAINST A COMPANY OR A RESIDENTIAL MORTGAGE LOAN ORIGINATOR SHOULD COMPLETE AND SEND A COMPLAINT FORM TO THE TEXAS DEPARTMENT OF SAVINGS AND MORTGAGE LENDING, 2601 NORTH LAMAR, SUITE 201, AUSTIN, TEXAS 78705. COMPLAINT FORMS AND INSTRUCTIONS MAY BE OBTAINED FROM THE DEPARTMENT’S WEBSITE AT WWW.SML.TEXAS.GOV. A TOLL-FREE CONSUMER HOTLINE IS AVAILABLE AT 1-877-276-5550.

THE DEPARTMENT MAINTAINS A RECOVERY FUND TO MAKE PAYMENTS OF CERTAIN ACTUAL OUT OF POCKET DAMAGES SUSTAINED BY BORROWERS CAUSED BY ACTS OF LICENSED RESIDENTIALMORTGAGE LOAN ORIGINATORS. A WRITTEN APPLICATION FOR REIMBURSEMENT FROM THE RECOVERY FUND MUST BE FILED WITH AND INVESTIGATED BY THE DEPARTMENT PRIOR TO THE PAYMENT OF A CLAIM. FOR MORE INFORMATION ABOUT THE RECOVERY FUND, PLEASE CONSULT THE DEPARTMENT’S WEBSITE AT WWW.SML.TEXAS.GOV."