Texas Lending (TexasLending.com) handles more than 3,000 loans each year, and these include a wide variety of mortgage loan issues. Working directly with clients to explain all of their options is important to Texas Lending CEO Kevin Miller. He founded TexasLending.com with the vision of providing personalized service to each customer. Today, Texas Lending speaks to A Gathering of Experts about a topic that is drawing quite a few questions from today’s baby boomer generation–reverse mortgages.
A Gathering of Experts: We hear quite a bit about reverse mortgages. What does Texas Lending tell its customers about this type of loan?
Texas Lending: As baby boomers consider their options, reverse mortgages are a great tool for many. Texas Lending helps counsel all of our clients toward the best option for their own personal needs. For some clients, that best option is a reverse mortgage.
A Gathering of Experts: Explain the basics of a reverse mortgage.
Texas Lending: A reverse mortgage allows homeowners over the age of sixty-two to receive their equity, either in lump sum form or as a monthly payment, or a line of credit, or a combination of all these options. Texas Lending often recommends reverse mortgages as an option for older homeowners who are having trouble making their monthly payment and cannot refinance using traditional means.
A Gathering of Experts: When someone contacts Texas Lending about reverse mortgages, will they be connected with a government-approved counselor?
Texas Lending: Yes. Texas Lending provides our clients with an expansive list of HUD approved counselors and the client chooses the one best suited for their location, timing and budget.
A Gathering of Experts: Could this be an option for seniors who are in danger of foreclosure?
Texas Lending: Yes! Because of the current state of the real estate market, many seniors can no longer afford their house payment. The Reverse allows the senior to payoff the loan with which they are struggling.
It is important to note, some struggling seniors don’t have the option of selling their home and moving somewhere cheaper because they are underwater on their mortgages—meaning they owe more than the appraised value of their home. Texas Lending has been able to help some clients payoff these underwater mortgages using the Reverse as the tool to do it.
A Gathering of Experts: So when someone is approved for a reverse mortgage with Texas Lending, they might end up with no house payment.
Texas Lending: Absolutely! They definitely end up with no requirement to make a house payment. They do, however, have to continue to pay their property taxes and homeowners insurance.
If a client wants to make payments on the Reverse, they certainly can. Some seniors want a traditional refinance and cannot qualify due to today’s more stringent credit standards. The Reverse credit criteria are simpler. The senior may find this loan suits their needs and they can choose to repay the loan just like a traditional loan. It is their decision entirely!
A Gathering of Experts: We’ve heard there are some drawbacks to the reverse mortgage.
Texas Lending: Drawbacks? No. However, a reverse mortgage may not be for everyone. We will make certain that applicants understand all of the terms before they enter into this type of mortgage. After working with a Texas Lending Consultant, an applicant will have all of the information they need about their available options in order to make an informed decision.
For more information, visit Texas Lending online at www.texaslending.com