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Texas Reverse Mortgage

Texas Sign

According to Wikipedia, Texas is the second-largest U.S. state in both area and population, and the largest state in the contiguous United States. Located in the South Central United States, Texas has an area of 268,820 square miles and a growing population of 24.6 million residents. Houston is the largest city in Texas and the fourth-largest in the United States, while Dallas-Fort Worth and Houston are the 4th and 6th largest United States metropolitan areas. Other major cities include San Antonio, El Paso, and Austin-the state capital. Texas is nicknamed the Lone Star State to signify Texas as an independent republic and as a reminder of the state’s struggle for independence from Mexico. The “Lone Star” can be found on the Texas State Flag and on the Texas State Seal today.

Due to its size and geologic features such as the Balcones Fault, Texas contains diverse landscapes that resemble both the American Southeast and the Southwest. Although Texas is popularly associated with the Southwestern deserts, less than 10% of the land area is desert. Most of the population centers are located in areas of former prairies, grasslands, forests, and the coastline. Traveling from east to west, one can observe terrain that ranges from coastal swamps and piney woods, to rolling plains and rugged hills, and finally the desert and mountains of the Big Bend. Due to its long history as a center of the American cattle industry, Texas is associated with the image of the cowboy.

The term “six flags over Texas” came from the several nations that had rule over the territory. Spain was the first European country to claim the area of Texas. France held a short-lived colony in Texas. Mexico controlled the territory until 1836 when Texas won its independence, becoming an independent Republic. In 1845 it joined the United States as the 28th state. After the war and its restoration to the Union, Texas entered a long period of economic stagnation.

In the early 1900s, oil discoveries initiated an economic boom in the state. Texas has since economically diversified. Today it has more Fortune 500 companies than any other U.S. state. With a growing base of industry, the state is a leader in many, including agriculture, petrochemicals, energy, computers and electronics, aerospace, and biomedical sciences. It leads the nation in export revenue and has the second-highest gross state product.

Texas Reverse Mortgage Limits

Texas reverse mortgages are a rather new feature of the lending industry but they have had time to work out a lot of bugs and develop it into the fine product it is now. Above all, a reverse mortgage can be the ideal product to provide you with a more secure retirement.

The national reverse mortgage, also called a Home Equity Conversion Mortgage (HECM), is guaranteed by the government, through the FHA. This Agency insures that your money will be there when you need it most. It allows you to live in your home until you do not need it, provides you with a monthly cash flow, and allows you to tap into the equity in it.

Reverse mortgages in Texas can be obtained by anyone who is at least 62 years of age. In addition, you must own your own home and have more money in your equity than you owe the lender. It is the balance of the money that will be used to provide you with an income.

This type of loan works just the opposite of a traditional mortgage. You never pay anything while you are still living in the home. The only requirements that you have to the home are that you must maintain it, keep insurance on it, and pay the taxes and bills.

A Texas reverse mortgage has an increased lending limit of $625,500. This means that you cannot get any more than that even if your home has a greater value. This limit is only good until the end of 2009. Possible changes to this limit are being discussed in Congressional committees at this time, and may be changed to a lesser amount of $417,000.

The beauty of a reverse mortgage loan is that it can enable you to live a more comfortable life in your retirement years. Many Texans have already been helped through the payment options that it provides because it allows you to choose the type of payments you want. You can choose a lump sum payment, a line of credit, and a monthly payment. In addition, you can even choose a combination of these options. This lets you make choices that will bring the best level of comfort for your needs.

Your home always remains under your control as long as you continue to live in it. It actually is still your home. You even retain the right to sell it at any time, but then the mortgage would be due in full at that time. Any money that is not used by you gets passed on to your heirs, too. Also, it is never possible to owe more than the home is worth.

If you are tired of making payments on your home and just want to be able to get a solid monthly cash flow during your retirement years then a Texas reverse mortgage is what you want. By using our reverse mortgage calculator you can get a good idea of what kind of money is available to you at the present reverse mortgage rate. While interest values will affect how much money is available over the years, you can have a monthly payment that meets your needs and eliminates your need to make payments on your home while you still need it.