Reverse Mortgage in Austin, TX
Age 62 or older and want to use your home equity without a monthly mortgage payment? Let’s talk. Call or text (512) 593-1336.
How a Reverse Mortgage Works
Most reverse mortgages are Home Equity Conversion Mortgages, or HECMs, insured by the FHA. They let homeowners age 62 and older turn part of their home equity into cash while continuing to live in the home. Instead of you making monthly payments to a lender, the loan balance grows over time and is generally repaid when the last borrower leaves the home, sells it or passes away.
You keep title to the home. You also keep the responsibilities of owning it: property taxes, homeowners insurance, any HOA dues and basic upkeep. Falling behind on those can put the loan in default.
Who It Can Help
- Retirees who want to eliminate an existing mortgage payment.
- Homeowners who want a standby line of credit for healthcare or home repairs.
- People planning to stay in their home for the long term.
When something else may be better
- If you plan to move in a few years, upfront costs may not be worth it.
- If you have income to support a payment, a HELOC home loan or cash-out refinance may cost less.
- High-value homes may also be served by private reverse products or a jumbo home loan, depending on goals.
What Determines How Much You Can Receive
- The age of the youngest borrower or eligible non-borrowing spouse.
- The home’s appraised value, up to the current FHA lending limit for HECMs.
- Current interest rates.
- Existing liens, which must be paid off from the proceeds.
The Steps
- Conversation. We go over your goals and whether a reverse mortgage really serves them.
- Counseling. You meet with an independent HUD-approved counselor.
- Application and appraisal. The lender reviews the property and your ability to keep up with taxes and insurance.
- Closing. You review the final terms and, for most HECMs, have a three-day right to cancel.
Reverse Mortgage Questions
Will the bank own my home?
No. You keep the title. The lender holds a lien, the same as with a traditional mortgage.
What happens to my heirs?
When the loan comes due, heirs can sell the home, pay off the loan, or keep the home by repaying it. For FHA-insured HECMs, they generally won’t owe more than the home is worth when sold.
Can I lose my home?
The loan can come due if you stop living there as your main home or fall behind on taxes, insurance or upkeep, which is why we plan for those costs up front.
Is counseling really required?
Yes. HUD requires counseling with an approved independent agency before an FHA-insured reverse mortgage application.
Austin Considerations
Rising property taxes are a real worry for many long-time Austin homeowners. Texas offers an over-65 homestead exemption and a tax ceiling on school district taxes, and some homeowners also qualify to defer taxes. Those protections work alongside a reverse mortgage, and we suggest reviewing them with the appraisal district and your tax adviser as part of the plan.
Let’s Talk It Through With Your Family
A reverse mortgage is a big decision, and we encourage you to bring family or a trusted adviser into the conversation. CapFi Lending is an Austin mortgage broker with access to more than 50 lenders, and Dustin Edwards has 22 years of experience helping Texas homeowners weigh their choices. Our reviews: 4.9★ on Google (79) · 5.0★ on Zillow (16) · 100% recommend on Facebook (42).
Call or text (512) 593-1336 for a free consultation.
Rather talk it over first? Call or text (512) 593-1336, Monday through Saturday from 9 to 7.
Work with a local Austin broker: