Bob Breedlove Reverse Mortgage

 

For Information on Reverse Mortgage Loans in East Texas
Call Bob Breedlove 903-279-6152

Bob Breedlove Reverse Mortgage

Bob Breedlove

 

What is a reverse mortgage and how is it different than a traditional forward mortgage?

reverse mortgage, also known as the home equity conversion mortgage (HECM) is a financial product designed for homeowners age 62 or older who have accumulated significant equity in their home and want to use access to this equity to supplement retirement income. Unlike a conventional forward mortgage, there are no monthly mortgage payments to make on a reverse mortgage. However, just like a forward mortgage, the homeowner is still responsible for paying taxes and insurance on the property and the property must serve as the primary residence of the homeowner for the life of the loan.

If you are a Texas homeowner age 62 or older, a Home Equity Conversion Mortgage (HECM) more commonly known as a reverse mortgage allows you as a homeowner to access a portion of the equity in your home to use any way you wish.

Unlike a traditional forward mortgage, where the borrower must make payments to the lender—with a reverse mortgage the borrower doesn’t have to repay funds until after the final borrower no longer lives in the home. There are no monthly mortgage payments required with a reverse mortgage.

In the state of Texas, both spouses must be at least 62 years of age and live in their own home with considerable equity.

Top Five Reverse Mortgage Facts

You must be 62 or older to qualify.

If there are multiple borrowers, the youngest borrower must be at least 62. In Texas, both spouses must be at least 62 years of age.

You must have significant equity in your home.

As a general rule, you will need about 50% equity in your home.

You must live in the house.

The loan can only be taken on a home that is your primary residence. If you stop living in your house for 12 months, the loan will become due.

There’s a financial assessment.

Before you receive your HECM, you must take a financial assessment, which will look at your income and credit history. Based on the results of this assessment, some of the loan’s proceeds may be set aside to pay for property taxes and insurance.

You can access some but not all of your equity.

You will not receive all your home equity from this loan. Instead, you will receive a percentage that is calculated based on prevailing interest rates, borrower age, and the value of your home.

Please Contact Bob Breedlove today at 903-279-6152 for your no-cost consultation.