Many seniors looking for ways to stretch their dollars and beat inflations consider a reverse mortgage. A reverse mortgage is a loan that allows senior citizens in Texas to liquidate the equity in their homes for cash without selling the home or incurring a monthly loan payment. What makes this type of loan especially beneficial to some seniors who may be cash strapped is that the loan does not have to be paid of until the borrower moves, sells their home or is deceased.
The borrower can receive the proceeds from a reverse mortgage via:
- one lump sum in cash
- equal monthly payments for as long the borrower lives in the home
- equal monthly payments over time.
Eligibility for a Reverse Mortgage
To be eligible for a reverse mortgage the borrower must be at least 62 years old, own their home without a mortgage or a very low mortgage and have no liens against the property. The borrower must also attend credit counseling before closing on the reverse mortgage.
To find out more about reverse mortgages visit: http://www.occc.state.tx.us/pages/consumer/education/RevMortArt.htm