Reverse Mortgage Guidance
Rebecca Finegan is a licensed Mortgage Loan Originator with Texana Bank, providing both traditional and reverse mortgage options. She helps homeowners understand their financing choices and how they fit into their plans.
The conversation begins with understanding your situation, your goals, and how a reverse mortgage works so you can decide whether it is an option worth exploring.
Rebecca Finegan | Reverse Mortgage Specialist | Texana Bank | NMLS #2729248
How a Reverse Mortgage May Fit Into the Bigger Picture
Your home equity may be an important financial resource. Depending on your situation, a reverse mortgage may provide funds for things such as:
✓ Home repairs or modifications
✓ In-home care or other support
✓ Paying off an existing mortgage
✓ Everyday living expenses
✓ Purchasing another home using a reverse mortgage for purchase
A reverse mortgage isn't the answer for everyone. The goal is to understand how it works and whether it fits your situation and plans.
Common Questions About Reverse Mortgages
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A reverse mortgage allows eligible homeowners to access a portion of their home equity while continuing to live in their home. Unlike a traditional mortgage, monthly principal and interest payments are generally not required while the borrower meets the terms of the loan.
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Yes. You retain ownership of your home. You are still responsible for property taxes, homeowners insurance, maintaining the home, and meeting the other requirements of the loan.
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The loan generally becomes due when the last borrower permanently leaves the home, sells the home, or no longer meets the requirements of the loan.
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Yes. For eligible borrowers age 62 or older, a reverse mortgage for purchase can be used to buy a new primary residence. This can be an option for someone who wants to downsize, move closer to family, reduce home maintenance, or choose a home that better fits the way they want to live.
The buyer brings funds toward the purchase, and the reverse mortgage provides the remaining eligible financing. There are no required monthly principal and interest mortgage payments as long as the loan requirements are met. The homeowner remains responsible for property taxes, homeowners insurance, maintenance, and any applicable HOA fees.
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No. In fact, it can be helpful to explore your options before there is a financial need. Waiting until finances become strained may limit the choices available, and qualifying for other types of financing may become more difficult.
Some homeowners consider a reverse mortgage as part of their overall financial planning, while they still have time to compare options and decide what makes the most sense for their situation.
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No. A reverse mortgage is one option among several. Understanding the costs, responsibilities, benefits, and alternatives can help you decide whether it makes sense for your situation.
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Reverse mortgage proceeds can generally be used however you choose. Homeowners may use the funds for home repairs or modifications, healthcare or in-home care, everyday expenses, travel, helping children or grandchildren, paying off debt, or creating more financial flexibility.
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A HECM reverse mortgage is a non-recourse loan. If the loan balance is more than the home is worth, the heirs are not personally responsible for the difference.
The family has three options:
✓ Keep the home by paying off the reverse mortgage according to the loan requirements.
✓ Sell the home and use the proceeds to repay the reverse mortgage. Any remaining equity belongs to the estate or heirs.
✓ Allow the lender to take the home if the family does not want to keep or sell it.
The reverse mortgage is tied to the home. It is not passed on to the children as their personal debt.
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With an FHA-insured HECM reverse mortgage, the loan is non-recourse. This means you or your heirs generally will not be responsible for paying more than the home’s value when the loan becomes due. FHA mortgage insurance provides this protection.
Have Questions About Your Home Equity Options?
You don't need to know whether a reverse mortgage is right for you before reaching out. We can start with a conversation about your situation and questions. From there, it usually takes less than five minutes to determine whether you meet the basic qualifications for a reverse mortgage.
If you qualify, we can then look more closely at how it works and whether it makes sense for your plans.
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