Texas Reverse Mortgage Lenders

About: Reverse Mortgages of Texas

If you are 62 and over, want to stay in your home and find that you need additional cash for retirement, then a Reverse Mortgage may be the right answer for you and your family. A Texas Revere Mortgage is designed to be the last loan you may ever need. It works opposite a traditional mortgage. Rather than making monthly payments to pay off a loan as is the case with a traditional or forward mortgage, with a reverse mortgage the equity in your home pays you. Since there are no monthly payments, there is no income or credit qualification required. 

The loan is safe and is Government-Insured by the Federal Housing Administration (FHA), a division of the Department of Housing and Urban Development (HUD). This loan was signed into law as a Government-Insured product by Ronald Reagan in 1988 and since its inception, it has helped hundreds of thousands of senior homeowners safely access the equity in their homes to help them better enjoy their retirement years. Reverse mortgages did not originate in 1988, there were previous versions but they were flawed and contained provisions which could hurt homeowners.

Many of those misconceptions about the current government product linger still today. But you can rest assured that the Home Equity Conversion Mortgage (HECM or “Heck-um”) insured by FHA is an excellent opportunity for seniors to access the equity in their homes without the pitfalls of the previous programs. Borrowers have a choice of how they can receive their money. After the current liens on the property are paid off, borrowers can choose a number of different ways to get their cash. 

You can choose to receive the funds all at once, in monthly installments, as a line of credit you can access as you choose, or a combination of any or all of the above. Regardless of how you choose to receive your money, you never have to make a monthly payment for as long as you live in your home.

Texas Reverse Mortgage Limits

Latest News: 2009

HUD has acted extremely quickly in putting out the new HECM reverse mortgage limits of $625,500 as established as a result of the passage of the American Recovery and Reinvestment Act of 2009 (ARRA).  This limit is effective for all loans which receive credit approval in the calendar year 2009 and remain in effect until December 31, 2009.

A reverse mortgage works based on actuarial tables and borrowers receive more money they older they are.  Therefore, 62 year old borrower just meeting the age requirement will receive much less cash than a 78 year old borrower with the same $500,000 home.  When borrowers do not take all their funds at the beginning of the loan and choose to use the line of credit option, the line of credit grows annually on the unused portion as the borrower would be eligible for a higher loan amount at the increased age.  Some borrowers have asked whether or not they should wait for a few years until they are older to apply to take advantage of higher principal limits for older borrowers. 

Only you and your trusted financial advisors know your situation but there are other factors which go into the determination of how much money you will receive on a reverse mortgage including interest rates and property values.  If your property value declines, you may be eligible for less money.  If the interest rates rise from their current near-historic low levels, then you may also be eligible for less money.  The other factor that changes and we have already seen several changes this year alone is the eligible margin.  The margin is added to the index to determine the final rate you pay and margin have risen this year as the uncertainty has grown in the mortgage secondary market.

The only constant is your age…you do know how old you are and you do know when your next birthday is.  No one can predict the future with interest rates or property values.  If the values rise considerably, you can refinance a reverse mortgage and the HUD insurance does not need to be paid a second time…you would just pay the difference, if any, from your old premium amount to the new premium based on any increase in the principal lending limit in your area. 

Texas Reverse Mortgage Counselors (phone-based)

The Texas Specialists at ALLRMC COMPANY are committed to helping you with answering all your questions and if the reverse mortgage is right for you, closing your loan quickly and easily.  If it’s time for you to put your equity in reverse so that you can keep your life moving forward, then we’re here to help!

Other 3rd Party Resources:

AARP Borrowing Against Your Home: Consumer guideprovided by AARP Foundation / Education Project. Download Here