Are Reverse Mortgages Bigger in Texas?

None of us would like to run out of gas in the middle of the road, where the gas station is miles away and there is no one present to aid us. The inconvenience is unthinkable more so if you’re only minutes away from home. And in Texas, the possibilities of being that far from fuel is a real one.

This same idea can be compared to a state of being financially challenged in our Golden years, wherein every single minute should be filled with lavish assortment of spa-like treatments and continuous dosage of rest and relaxing activities. But without the dough, how can we afford this ideal lifestyle?

The answer is to liquidate your assets to gain substantial amount of cash, and to accomplish this you can choose the Texas Reverse Mortgage. Now, what exactly is this plan? We will soon find out!

The Texas Reverse Mortgage is a cash loan for Texan seniors wherein the equity in their homes is liquidated as either one lump sum, equal monthly payments, through increasing credit line or a combination of all three which is effective as long the debtor still resides in their home. Equity being the value of the property minus the owner’s outstanding mortgage.

Now, the good thing about the Texas Reverse Mortgage is that repayment is unnecessary unless the borrower is no longer living in their home or has moved to another property or is deceased. If either of these events should happen, then the lender, who possesses the lien against the borrower’s property, may opt to foreclose the property as the most radical choice or the lender may solicit the lien directly from the borrower or indirectly from the borrower’s heir or appointed trustee.

Like any other loans, the Texas Reverse Mortgagee gains interest charges which start upon receiving the first payment, the interest rate being adjustable in annual, semi-annual to monthly basis. Some plans also have insurance premium charges and origination fees, which is the fee paid to the lender for originating the loan, in addition to the normal closing costs. But don’t worry; you can never owe more than the value of your home.

Now for you to qualify for a Texas Reverse Mortgage plan, you must at least be 62 years of age who fully owns the home or has a low home loan balance. The borrower must also have a good credit history and possesses no other liens against the home.

Take note that if you would undergo a Texas Reverse Mortgage you are still liable for the current insurance of your home and the property taxes therein.

A borrower using the Texas Reverse Mortgage should also take into account the disadvantages of having too many liquid assets kept in the bank that may disqualify a senior from public benefits such as government implemented health-care programs. Some people solve this dilemma by transferring funds to an escrow account until the need for liquidation is necessary.

Knowing the imperative facts of a Texas Reverse Mortgage, we can now decide if it is for us.

Now if you are Warren-Buffet type, who is financially overweight, then this plan is definitely not for you. But if you are they type that is in dire need of cash right now, one who is not planning to move in a couple of years and one who has no other alternative than making a loan to solve a financial crisis, then you may opt to choose a Texas Reverse Mortgage plan. Just be sure to inform your co-inhabitants before making this decision. No one wants irreconcilable differences to develop in the road ahead. Truly, the Texas Mortgage Plan is a way to get liquid!

Written by charles dennis on May 22nd, 2007 with comments disabled.
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