A reverse mortgage allows seniors with home equity to borrow money from a lender and increase financial flexibility during life’s later years. Before borrowing, however, you should understand how these loans work and what’s necessary to qualify. Our partners at ConsumerAffairs researched the best reverse mortgage lenders in Waco so you know where to apply for clear, fair terms.
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With low taxes, affordable cost of living and pleasant weather year-round, Waco is a popular place to retire. If you own your home outright or have little left to pay off, a reverse mortgage is an option for increasing cash flow.
With a reverse mortgage in Waco, you get nontaxable money from a lender in exchange for relinquishing equity in your home. As long as you continue to live in the house, pay taxes and maintain the property, you don’t have to pay back the lender immediately. The loan is due only after you die or move away.
Borrowers use the funds from a reverse mortgage in Waco to cover monthly expenses, remodel a home, lower credit card debt, pay Medicare costs and for many other purposes.
To qualify for a reverse mortgage in Waco, you must generally meet these requirements:
Be 62 or older
Own the home completely or have a low payoff amount
Occupy the home as your main residence
Be able to continue paying property taxes and insurance
The amount you can borrow with a reverse mortgage depends on your age, current rates, your financial situation and the value of your home. In Waco, home values have been rising, a trend expected to continue over the coming year.
There are different types of reverse mortgages in Waco: Home Equity Conversion Mortgage (HECM), proprietary reverse mortgage and single-purpose reverse mortgage.
Types of reverse mortgages in Waco
Most popular; government-insured; multiple payment plans; guidance from HECM counselor; use funds as you wish
Privately funded; loans can exceed federal limits; best for high-value homes; money available as lump sum; use funds as you wish
Funded at state or local level; applicants with low or moderate incomes can qualify; funds only available for single purpose
When applying for a reverse mortgage in Waco, consider all the costs associated with the loan — not just interest rates, but also any origination, servicing or third-party fees. Work with a lender who goes over all your options and offers you personalized advice.
Before taking out a reverse mortgage, think about how it may affect estate planning. Many reverse mortgages are paid off by heirs after the borrower dies. Make sure you know if your reverse mortgage in Waco is a nonrecourse loan, meaning you or your heirs will never owe more than the home’s value.
This award-winning company prides itself on a 97 percent customer satisfaction rating from in-house surveys. American Advisors Group offers HECMs and an expert staff to assist with the process every step of the way. Customers say that although sometimes the process takes longer than they had hoped, it works out in the end and is well worth the wait.
This top-ranking reverse mortgage lender makes it a priority to earn and keep your trust. Finance of America Reverse has plenty to offer: lump sum, tenure payment and line of credit options; an average closing time of 30 days; and award-winning customer service. According to customers in Waco, if you’re unsure of what something means, the team at FAR will go out of their way to explain it to you.
As one of the country’s largest reverse mortgage providers, Liberty Home Equity Solutions has worked with more than 50,000 seniors since 2003, and all of that experience has led to their reputation as industry experts. Offering HECMs and a promise to match or beat all competitors, this lender is an industry favorite. Customers say they love the responsiveness and personal attention provided by Liberty Home Equity Solutions representatives.
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