There are seniors that have worked their lifetime to have the lifestyle that they have today. In contrast, some older individuals are not familiar with where to find funds to maintain their retirement.
When the reverse mortgage was introduced 30 years ago, most customers were single women, often widowed around the age of 75 years old. The funds were typically used to fix a home but the purpose of a reverse mortgage has changed.
Here is an example. A couple in their 70’s named the Williams own 35 weeks of timeshares every year in 5 different systems. They are familiar with being successful and handle each different organization to gain maximum benefits with a timeshare schedule into the calendar year of 2022. The couple decided to take out a reverse mortgage on their primary home in Texas to avoid cutting back on what they love the most; traveling.
Reverse mortgage consumers can select how they receive and spend the money. Options include a lump sum, a fixed monthly payment for the entirety of the loan, a line of credit or a combination of all of these choices. One of the most popular options is the line of credit that 60% of borrowers move forward with by working with a Texas reverse mortgage lender. It gives a consumer the opportunity to draw funds from the loan when they choose.
The amount of the reverse mortgage will depend on the age of the borrower, the type of loan and value of their property. The older the customer, more equity in their home and the less amount of money that is owed, the larger the reverse mortgage amount. There is no requirement that owners re-qualify during the term of the reverse mortgage yet property taxes and home insurance must remain current.
The Williams decided to take out a home equity loan to remodel their home. To maintain their retirement cash flow, they sold lackluster bonds and paid of the remainder with of the reverse mortgage. This couple also earns $1,500 a month tax free, for another 20 years from the reverse mortgage.
During the winter time, the Williams spend 5 weeks in the same timeshare unit in Big Island Hawaii. They also go to Kauai for a few weeks, Palm Springs and San Diego before going back home to Texas. The decision to pay $22,000 – $23,000 in annual fees for these timeshares has been eliminated because they simply add the amount on a mortgage to have the luxury of a second home.
Do you have more questions about reverse mortgages? Call a Texas reverse mortgage lender and take care of your retirement the way you always wanted.Tags: Reverse mortgages in texas, Texas reverse mortgage, texas reverse mortgage lender