What is a Reverse Mortgage?
A reverse mortgage lets eligible homeowners borrow against home equity. Interest and fees can increase the balance. Taxes, insurance, maintenance, and occupancy obligations still matter, and failing to meet them can put the home at risk.
This guide is a starting point for an informed conversation. It does not confirm eligibility, approval, pricing, or program availability. Mortgage terms and requirements can change, so ask Texas Mortgage Info for current information about the property and your situation.
The loan balance generally grows
A reverse mortgage lets an eligible homeowner borrow against home equity. Interest and fees are added over time, so the amount owed typically increases rather than decreases.
Repayment events matter
The loan can become due when the borrower sells, permanently moves out, or dies, and other events may apply. Discuss plans for the home and household members before proceeding.
Homeowner duties continue
The borrower generally must maintain the home, meet occupancy rules, and keep property taxes and required insurance current. Failure to meet obligations can put the home at risk.
How do repayment events, counseling, and costs affect your plans?
Ask for an explanation based on current guidelines and written disclosures before making a financing decision.
Details worth gathering.
- Your ownership, occupancy, and long-term plans for the home
- Questions about counseling, fees, proceeds, and repayment events
- A discussion with trusted family members or advisers when appropriate
Reverse Mortgage FAQ
Does the homeowner keep title to the home?
Generally, yes, but the home secures the debt and the borrower must meet the loan’s ongoing obligations.
Is there no cost because monthly mortgage payments may not be required?
No. Interest and fees accrue, the balance usually grows, and property-related obligations continue.