Reverse Loan Guide has worked with many seniors in Texas, helping them borrow from the existing value of a home. Call Bob Heckler, if you have questions on Texas Reverse Mortgages (512) 328-2225.

When one of my clients found they were struggling to make their $800 monthly mortgage payments and all of the rest the bills using monthly pensions and Social Security – they considered selling their three bedroom home in Houston. 

Mary, one of the co-owners, said it very well, ”We’ve lived in the house for 31 years, and it’s perfect for us, the right size, location, and amenities.” So instead of selling and moving out of their dream home, they applied and was approved for $275,000 reverse mortgage, using $140,000 to pay off their existing mortgage and $15,000 to pay off their credit cards. They’ll keep the remaining $120,000 as a line of credit.

Let’s look at why you don’t want to put your home mortgage in reverse:

The price of the reverse loan. Charges could be as high as $10,000 for a $200,000 reverse mortgage after covering a 2% lender’s origination fee, 2% mandatory mortgage insurance and costs such as title insurance, an appraisal and even repairs. You’ll also owe 0.5% of the loan balance in mortgage insurance premiums every year.

Another client learned that they’d have to pay $8,000 for a $50,000 reverse mortgage on his home, he decided against it. He had plans to travel more and fix up his home but decided not to.

These fees are a small price to pay for the ability to hold on to your home and preserve your standard of living. If you decide to sell your home, remember the 5% to 6% brokerage commission you’d have to pay if you do. So, weight all the options. I can help you do that so you get a clear picture of costs you pay for the money you get.

Call Bob Heckler, if you have questions on Texas Reverse Mortgages (512) 328-2225.