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Need to find a reputable reverse mortgage lender in El Paso Texas? we can assist you
With one of the largest network of reverse mortgage lenders, we make it easy for you to comparison shop and receive the best HECM reverse mortgage in El Paso Texas.
What is a reverse mortgage loan?
A reverse mortgage is a loan that allows elderly borrowers to access their equity without selling their home. With a reverse mortgage, the lender makes payments to the borrower – i.e. the reverse of a normal mortgage. The loan is repaid from the proceeds of the estate when the borrower moves or passes away.There is no other program which has the feature of not making a monthly mortgage payment, so this is designed specifically for seniors who want to eliminate a mortgage or release a portion of the equity.
|Qualifications for Reverse Mortgage?|
|**||All Borrowers MUST BE 62 years of age, or older|
|**||Seniors must occupy the home as principal residence|
|**||No credit, income or health requirements to qualify|
|**||Cash may be used for any purpose, no restrictions|
|**||Social Security & Medicare benefits are not affected|
Do you understand how does a reverse mortgage work?
Reverse mortgage loan allows seniors to tap into their home’s equity without having a monthly mortgage payment, some 600,000 seniors have taken on over the last 22 years.
The program works such that the amount you borrow today, will increase onto the loan according to your interest rate, meanwhile you get to live in the home while in retirement.
What are the Pros and Cons to Reverse Mortgage
|Reverse Mortgage Positives||Reverse Mortgage Negatives|
|Provides a guaranteed source of tax-free income for the rest of your life.||Reverse mortgages can be very expensive. Costly fees, interest rates, mortgage insurance, and closing costs may apply.|
|Can choose to receive your money as a lump sum, monthly payment, line of credit, or combination of these ways.||Limited to borrowers 62 years old or older.|
|Allows you to remain in your home.||Reduces the home equity amount you leave to your children or grandchildren.|
|You cannot owe more than the value of your home at the time of repayment, no matter your balance.||You still remain responsible for paying property taxes, insurance, and repairs on your home. If you fail to keep up with these costs, you may be required to repay your reverse mortgage early.|
|You do not have to own your home fully in order to qualify for a reverse mortgage.||Any balance remaining on your first mortgage will be included in the balance of your reverse mortgage.|
|If the reverse mortgage balance is less than the value of your home at the point of repayment, your heirs get to keep the difference.||The loan has to be repaid when you die, sell your home, or no longer use it as your primary residence.|
|The loan can be repaid without selling your home.||Your heirs will have to pay off the balance plus interest when the loan term ends.|
|Reverse mortgage income will not impact your Medicare and Social Security eligibility.||May impact your ability to qualify for Medicaid and Supplemental Social Security benefits.|
|Ownership and title of the home remain in your name.||There are caps on how much you can borrow with most reverse mortgage programs.|
|You do not have to worry about making a monthly payment with a reverse mortgage as you would if were to borrow money through a home equity line of credit (HELOC).||A reverse mortgage is more expensive and binding that establishing a home equity line of credit.|
|Your credit score, savings, and income are not used in the loan calculation. Instead, your age, health, home value, and home equity are taken into consideration.||You are required to meet with a reverse mortgage counselor before obtaining the loan.|
|You can cancel the loan for any reason (right of rescission) during the three day period after your reverse mortgage closes.||After the three day period passes, the loan is final. Refinancing a reverse mortgage is difficult and costly.|
If you’re considering a reverse mortgage, be aware that:
- Lenders generally charge an origination fee, a mortgage insurance premium (for federally-insured HECMs), and other closing costs for a reverse mortgage. Lenders also may charge servicing fees during the term of the mortgage. The lender sometimes sets these fees and costs, although origination fees for HECM reverse mortgages currently are dictated by law. Your upfront costs can be lowered if you borrow a smaller amount through a reverse mortgage product called a "HECM Saver."
- The amount you owe on a reverse mortgage grows over time. Interest is charged on the outstanding balance and added to the amount you owe each month. That means your total debt increases as the loan funds are advanced to you and interest on the loan accrues.
- Although some reverse mortgages have fixed rates, most have variable rates that are tied to a financial index: they are likely to change with market conditions.
- Reverse mortgages can use up all or some of the equity in your home, and leave fewer assets for you and your heirs. Most reverse mortgages have a “nonrecourse” clause, which prevents you or your estate from owing more than the value of your home when the loan becomes due and the home is sold. However, if you or your heirs want to retain ownership of the home, you usually must repay the loan in full – even if the loan balance is greater than the value of the home.
- Because you retain title to your home, you are responsible for property taxes, insurance, utilities, fuel, maintenance, and other expenses. If you don’t pay property taxes, carry homeowner’s insurance, or maintain the condition of your home, your loan may become due and payable.
- Interest on reverse mortgages is not deductible on income tax returns until the loan is paid off in part or whole.
El Paso TX is really seeing a benefit due to the Government's passing of the American Recovery and Reinvestment Act of 2009, which increased the national reverse mortgage lending limit to $625,500. What that means to seniors looking to get a El Paso reverse mortgage is an increase in the total benefit available to them.
For comprehensive reverse mortgage information for locals of El Paso TX, please see the links above and below or give us a call on 877 700 0534 . If you would like someone to contact you, please fill out the form below.
What are the Myths of the HECM programs
- Myth HECM Banks wont take your home you keep ownership.
- Myth My Children heirs will be responsible to pay back the loan.
- Myth Reverse mortgages brokers/lenders rip off seniors.
- Myth Credit scores and Income are important to qualify for HECM.
- Myth My home needs to be paid off for me to qualify.
- Myth I wont have any equity left by taking a reverse mortgage.
- Myth I cannot sell my home after a reverse mortgage.
- Myth I will loose my Social Security income.
- Myth Reverse mortgages are only for seniors who don't have money saved up for retirement.
- Myth HECM fees are too expensive.
- Myth I have to pay back the loan if my partner passes away.
- Myth Lender will force me to sell my home.
How Much can I receive with a reverse mortgage?
Use our free free calculator reverse mortgage to get an estimated amount you can receive with the reverse mortgage loan. This amount will be based on your age, the properties value, and the current market interest rates. To learn more about interest rates visit - reverse mortgage interest rates.
Does the lender take title to my property?
No, you retain the same ownership and title that you have today. The lender puts a lien on the property just as they would with a regular forward mortgage which is paid off when you sell your property, or when you pass and your heirs inherit and they can pay off the loan with another loan or other funds.
When does the Reverse Mortgage need to be paid off?
When you sell the property or no longer occupy your home as your primary residence for a period of 12 months or longer.
What does the lender expect from me?
You must maintain the property in reasonably good condition. You must pay the property taxes and the homeowners insurance and any homeowner's association dues you may have. And of course, the lender expects you to continue to occupy the property.
I currently hold title in a Trust, can I keep it that way?
Yes you can but the lender and title company do require that they review the trust and it must be approved. If you hold title in a trust you should let your Loan Officer know up front so he/she can get a copy of the trust and have it reviewed immediately so that there are no surprises later. Most trusts are prepared with lenders and their requirements in mind so they are not a problem but it is best to know as early on as possible.
Do I need to own my house free and clear, or can I get a reverse mortgage if I already have a loan on my house?
You do not need to own your home free and clear to get a reverse mortgage. The proceeds can be used for any purpose, but any existing liens on the property must be paid off at closing. If the reverse mortgage is not large enough to cover your existing loan, you can still get the reverse mortgage by bringing in the additional funds from another account and still never have to make another house payment!
Will my heirs still receive an inheritance?
Yes, after the balance of your reverse mortgage is paid off, all remaining equity will go to your heirs. One of the forms we provide you with before you close your loan is an amortization schedule so you will always know the principal balance of your loan, year by year. How much equity will remain will Depend on such variables as how much money you draw, how long you stay in your home, home appreciation your home experiences and interest rates (if you have a variable interest rate loan).
Sounds great so far, what is the down side of a reverse mortgage?
While the reverse mortgage allows you to age in place and has no recourse, you are spending what has typically become a portion of the inheritance people have historically left to their heirs. With the changing of people's life expectancies, people no longer work until they are 62 and then pass at 70 leaving an estate with a paid off mortgage for their heirs. Now, people are living longer and need an additional source of income to help fund their retirement as social security is not equipped to fulfill all their needs.
The reverse mortgage is an excellent and viable retirement tool but many seniors find it better to talk to their families early on in the decision making process. Most family members are not equipped to fund their family needs as well as those of their parents and see reverse mortgages as welcome vehicles for their senior family members, however, communication is highly recommended.
You said minimal credit qualifications, what if I've had a bankruptcy?
Bankruptcies are typically not a problem and there is no time limit after a bankruptcy has been discharged. However, if you are currently in a Chapter 13 Bankruptcy (where you're making payments), then you have to be able to show that you have been making payments on time for a period of 12 months or more. The credit requirements are that you are not currently delinquent on a federal debt (SBA Loan, Student loan, FHA home loan, etc).
How do I determine if the Reverse Mortgage is the right loan for me?
The reverse mortgage, especially the HUD Home Equity Conversion Mortgage (HECM) can be a very expensive short-term loan and may not be right for all borrowers. There are many things to consider. With the costs of the loan and the government insurance, if you only need the loan for a very short period of time, a reverse mortgage may not be the right option for you. On the other hand, if you intend to occupy your property for a long period of time and wish to never make another payment for life while accessing your equity in the form of monthly payments, a line of credit, or both, then a reverse mortgage may be perfect for you!
How can I choose to take the reverse mortgage proceeds and are there any restrictions on what I use the funds for?
This is one of the great features of the loan you have choices!
- You can take a lump sum, that is, all the cash up front.
- Monthly Income (Tax-Free, Check with your Tax Advisor)
- A Credit Line which grows monthly on the unused portion
- A combination of any of the above, cash, income and credit line
Give us a call to learn more about the program 877 700 0534 we cover El Paso TX.