Reverse Mortgage Texas
July 29, 2009
Falling and unstable housing prices along with unexpected losses in retirement funds has caused many senior homeowners to take a hard look at getting a reverse mortgage on their home.
Officials at Reverse Mortgage Texas® urge seniors in these emotional circumstances to take their time and think through the process.
For seniors who had planned to take part of their retirement savings to pay off their existing mortgage, a reverse mortgage may be a good alternative. This permits their mortgage to be paid off, ending monthly mortgage payments without touching their retirement funds. Paying off an existing mortgage during retirement with a reverse mortgage is one of the primary uses of this type of mortgage.
For seniors who had planned in retirement to sell their home, purchasing a less expensive home and use the profit from the sale as part of their retirement income, the issues become more complex. Some see using funds from a reverse mortgage as a stopgap until their home again becomes more valuable and they sell it as originally planned.
Financial planners and Reverse Mortgage Texas® officials will tell you this is a complicated decision with risks. The first issue is when do they plan to sell the house. The second issue is how well they or anyone else can predict when the market value of the home will increase enough in value for them to sell.
The same applies to those who have lost value in their retirement funds and would like to use some money from the reverse until their retirement funds value bounces back. When will the bounce occur? It be will difficult to get anyone to do better than a best educated guess on this event. It will depend on where the funds are positioned, how much risk the fund owner is willing to take, and the future performance of the funds, etc. In addition there are possible tax issues. It seems wise to talk to a competent, professional financial planner or financial advisor and a tax professional prior to making this reverse mortgage decision.
Most folks contemplating this option do not consider that a reverse mortgage is not designed to be a short term real estate loan. Our advice has continually been that a homeowner needs to have the reverse mortgage for three-to-five years for it to make good financial sense.
Of course, there are other considerations to be made. We have completed reverse mortgages loans for borrowers who we suggested use should other alternatives. As an equal opportunity loan provider, if someone wants a reverse mortgage and is qualified for it, we will provide them with a reverse mortgage, regardless of our advice.
Other types of mortgage solutions may be refinancing their current mortgage, getting a home equity loan or home equity line of credit loan. Reverse Mortgage Texas® provides none of these types of loans; we restrict our business to reverse mortgages only.
Falling and unstable
housing prices along with unexpected losses in retirement funds has caused many
senior homeowners to take a hard look at getting a reverse mortgage on their
home.
Officials at Reverse Mortgage Texas® urge seniors in these emotional circumstances to take their time and think through the process.
For seniors who had planned to take part of their retirement savings to pay off their existing mortgage, a reverse mortgage may be a good alternative. This permits their mortgage to be paid off, ending monthly mortgage payments without touching their retirement funds. Paying off an existing mortgage during retirement with a reverse mortgage is one of the primary uses of this type of mortgage.
For seniors who had planned in retirement to sell their home, purchasing a less expensive home and use the profit from the sale as part of their retirement income, the issues become more complex. Some see using funds from a reverse mortgage as a stopgap until their home again becomes more valuable and they sell it as originally planned.
Financial planners and Reverse Mortgage Texas® officials will tell you this is a complicated decision with risks. The first issue is when do they plan to sell the house. The second issue is how well they or anyone else can predict when the market value of the home will increase enough in value for them to sell.
The same applies to those who have lost value in their retirement funds and would like to use some money from the reverse until their retirement funds value bounces back. When will the bounce occur? It be will difficult to get anyone to do better than a best educated guess on this event. It will depend on where the funds are positioned, how much risk the fund owner is willing to take, and the future performance of the funds, etc. In addition there are possible tax issues. It seems wise to talk to a competent, professional financial planner or financial advisor and a tax professional prior to making this reverse mortgage decision.
Most folks contemplating this option do not consider that a reverse mortgage is not designed to be a short term real estate loan. Our advice has continually been that a homeowner needs to have the reverse mortgage for three-to-five years for it to make good financial sense.
Of course, there are other considerations to be made. We have completed reverse mortgages loans for borrowers who we suggested use should other alternatives. As an equal opportunity loan provider, if someone wants a reverse mortgage and is qualified for it, we will provide them with a reverse mortgage, regardless of our advice.
Other types of mortgage solutions may be refinancing their current mortgage, getting a home equity loan or home equity line of credit loan. Reverse Mortgage Texas® provides none of these types of loans; we restrict our business to reverse mortgages only.