Capital Home Mortgage Midland

Midland Reverse Mortgage Loans

Midland Reverse Mortgage Lender

Midland Reverse Mortgages

When you retire, you should be able to live off of Social Security, a pension, and retirement funds. Unfortunately, that is not the case for many seniors in Midland. Many look to one of their most significant assets and investments to supplement their retirement income – their home. 

If you’re at least 62 years old and have paid off most of your mortgage, a Midland reverse mortgage should give you the funds you need. You should do your research before deciding.

What is a Reverse Mortgage?

Simply put, a reverse mortgage is a loan secured by your home’s current value (equity). Similar to a cash advance, your lender loans you the money; this can be done in the form of a lump sum, a line of credit, or regular monthly withdrawals. You will eventually have to pay the money back with interest, but not during the term of your mortgage.

How Does Reverse Mortgage Work?

Reverse mortgages are the exact opposite of a regular mortgage because instead of making payments to your lender, your lender pays you. As mentioned, you are not required to repay the loan during the reverse mortgage term. Instead, you or your estate pay off the principal you borrowed, plus the accumulated interest, when you sell your home, relocate, or pass away. 

After your home is sold, the loan balance is subtracted from the sale proceeds, and any money left over is given to you or your heirs.

Eligibility Requirements of Reverse Mortgage

You must be 62 or older to get a reverse mortgage, and the house you’re mortgaging must be your primary residence. You must use a portion of the funds from your reverse mortgage to pay off any existing traditional mortgage on the property. Because of this, a reverse mortgage may not be an option if you still owe a sizable amount on your mortgage.

What Is The Cost of Taking Out a Reverse Mortgage?

There is a high cost associated with reverse mortgages. Some out-of-pocket expenses are associated with the mandatory counseling session needed to secure a reverse mortgage. Then, you have initial fees that can be paid in cash or rolled into your loan, such as:

  •  Mortgage origination fee –

This covers the costs associated with processing and preparing the mortgage. 

  • Real estate closing costs – 

This includes the home appraisal, title search, recording fees, home inspection, taxes, and any other fees required by your lender.

  • Mortgage insurance premium – 

The initial fee for HUD mortgage insurance is 2% of the home’s appraised value and 0.5% annually.

When Does a Reverse Mortgage Become Due?

Your reverse mortgage loan is due once you either sell the house, pass away, or stop making the required mortgage payments (such as taxes and insurance).

You can continue living in your home as you pay the property taxes on time. The home may go into foreclosure if you neglect to maintain it or fall behind on your property taxes and other housing-related expenses.

When you pass away, the house goes into foreclosure. If the home’s market value is significantly higher than the loan amount, your heirs can sell the property, pay off the mortgage, and keep the difference.

Is a Reverse Mortgage Right For You?

To avoid any unwelcome surprises later on, it’s essential to do your research on the financial and personal consequences of a reverse mortgage. In any case, you should refrain from tapping your most significant asset. Talk to your family financial adviser about this and ask them for advice on how to use these funds. 

To prevent falling victim to mortgage scams that seek to take advantage of elderly homeowners, only work with reputable lenders like Capital Home Mortgage. As a direct mortgage lender in Midland, we offer some of the best reverse mortgage rates in the area and can expedite the mortgage process for your convenience.

If you’re still on the fence about getting a reverse mortgage, we can help you explore other options, such as a home equity line of credit (HELOC) or a refinance. Rest assured, we’ll help you with all the details you need to make an informed choice and enjoy your golden years. 

You can reach us by calling (432) 218-4828 or sending us a message online.

Why Midland is Choosing Capital Home Mortgage...

Close On Time with True Approval

Control of the Loan from the Application to Funding.

Great Midland Rates

Direct Mortgage Lender Providing Competitive Rates and Low Fees.

Midland Customer Service

7  Day a Week Support from Application to Final Mortgage Payment. 

Midland Mortgage Rates

Have you ever wondered why interests rates are what they are and what determines the final rate?  Why borrowers receive different interest rates? Or why rates go up and down?  Interest Rates are calculated using several factors.

  • Demand for the mortgage Securities
  • Property securing the mortgage
  • occupancy of the property
  • Loan to value of the property
  • Borrower’s credit worthiness

Midland Reverse Mortgage Loan

  • 62 years or Older
  • Primary Residence Only
  • Must Be Able to Pay Homeowners Insurance and Taxes
  • Required HUD Counseling
  • Meet Required Equity Values
Reverse Mortgage Home Loan Benefits
  • 62 years or Older
  • Primary Residence Only
  • Must Be Able to Pay Homeowners Insurance and Taxes
  • Required HUD Counseling
  • Meet Required Equity Values
Not Sure? Take a Look at Other Midland Mortgage Programs

Midland Mortgage Team

Conor Hayhurst

NMLS 743506

Damon Embler

Sr Loan Officer
NMLS 882260

chris erwin

Sr Loan Officer
NMLS 914064

Dale Gremillion

NMLS 210325

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