If you have heard about reverse mortgages, you may have heard certain myths and misconceptions about their application. These days, this form of loan is a useful tool for people in a variety of situations, so take some time to learn about how they could be helpful to you. These can be of benefit to those in need of a boost to their retirement savings, or for other uses, such as the purchase of a second home!
When you speak with FHL Texas in Frisco, TX about the advantages of a reverse mortgage, be sure to ask all of your questions. Our helpful team is here to give you information and guidance along the way through the process. If you are age 62 or older a reverse mortgage loan could give you some additional capital that you can pay back over time, or even when you sell the house!
What Exactly Is A Reverse Mortgage?
While reverse mortgages have been around for a while, there are still a host of common misconceptions about how they help seniors, so learn about their benefits. HECM loans are designed to give people who are age 62 and older to borrow on their home’s equity in a tax-free manner. This provides property owners with an available solution that can be used however they like.
Unlike traditional home loans, the owner of the home receives a payment from the lender, who holds the equity until certain conditions are met. For instance, if you pay back your reverse mortgage, it will complete the loan. Other situations where your HECM loan will need to be repaid is in the event of your death, or if you decide that you would like to permanently move out or sell your home.
How Can A Reverse Mortgage Be Used?
Simply put, your equity in your home can be shifted into direct liquid assets, meaning that there is a wide variety of ways that you could use your reverse mortgage. Traditionally, these loans have been helpful in providing additional capital for those in need of boosting their retirement savings. This way, you can continue to live in your home, while drawing from the equity of your property.
Others are finding more creative ways to take advantage of this opportunity, including the purchase of a second home. Reverse mortgages are only possible on your primary residence, but you can use that income to purchase a second house or investment property. Talk to our team about all of your options!
Learn More About Reverse Mortgages With FHL Texas In Frisco, TX
If you are considering a reverse mortgage for additional capital, talk with a trusted home loan advisor about your options. For more information, schedule an appointment with FHL Texas in Frisco, TX with a call to 1-800-990-LEND(5363)!
