Reverse Mortgage Pros and Cons

Looking for a texas reverse mortgage? Want to know what the reverse mortgages pros and cons are? We’ve created this short guide to help you navigate these choppy waters, so to speak, and find out if a reverse mortgage is right for you.


Many seniors are looking for a guaranteed way to receive an income in their retirement years, and this is a great way to do so. Keep in mind that you must speak with a reverse mortgage counselor before you make any final decisions. The state (and government) want to ensure that you are in a state of knowing the pros and cons of a reverse mortgage and it’s implications.

If you’re not sure how a texas reverse mortgage works, then visualize the following. You already know how a traditional mortgage works when you buy a home. You pay the bank a monthly mortgage payment for the house. As time goes on, the equity in your house increases, and your loan amount decreases until that fabulous day, when you finally have paid off your mortgage! Now, with an reverse mortgage, this is the complete opposite. Instead of you paying the bank, the bank pays you! They will send you monthly payments, one large one time payment, or a monthly payment plus a credit line, in return for the equity in your home.

What Are The Requirements To Get A Texas Reverse Mortgage?

In order to qualify for a texas reverse mortgage, you must be 62 years of age or older and you must receive reverse mortgage counseling from a HUD approved counselor. There are also other requirements that the house must meet. You must either own the home outright, or have a considerable amount of equity in the home. The home must also be appraised at a good and comparable price. You will have a few options to receive your payments. You can either elect to receive monthly payments, a credit line, or a one time payment. Once you die, the loan becomes due and the bank or lender gets your home. Keep in mind that you are still responsible for the property taxes and the upkeep of the home.