When you originally bought your home, you were likely given one or more decades in which you didn’t have to worry about property taxes because these payments were included as part of the mortgage. This protects the lender’s investment since homebuyers will not have this added expense. Many homeowners think that reverse mortgage will work in the same way, giving them a break from growing fees and increasing property taxes. Unfortunately, reverse mortgages do not include payment of property taxes in the way that traditional mortgages often do. In this blog, the Home Tax Solutions team will walk you through what reverse mortgages actually offer and how they can help you make your property tax payments, and when it’s a better decision to partner with us for a property tax loan.
What is a Reverse Mortgage?
A reverse mortgage is a special kind of loan that allows homeowners over the age of 62 to access some of the equity in their home before they sell. Even if you just paid off your 30-year mortgage, the odds are good your home has already increased in value. This is great news if you’re ready to sell. Reverse mortgages lend homeowners a certain amount of money paid out in monthly installments based on the equity in the home. A reverse mortgage doesn’t need to be repaid until after the home is sold. You can use the money you receive from a reverse mortgage to pay your property taxes, but that responsibility for payment is still yours.
What is a Property Tax Loan?
A property tax loan is a lending agreement that is given in order to repay your back property taxes or pay your current taxes on time to avoid late fees. In some cases, you’ll be given a window of time before payments are due. This gives you an opportunity to stay on top of current taxes and avoid getting stuck in a cycle where you feel like you’re always behind on property tax payments. It’s a great option for many homeowners who want to relieve the extra financial strain of property taxes.
Which is Right for Me?
While reverse mortgages don’t take over your property tax payments, they can free up the funds you need to get out from under this debt. However, they’re only available for homeowners over the age of 62, and a reverse mortgage is just not the right option for everyone. If property taxes are the real reason you’re considering a reverse mortgage, we encourage you to consider a property tax loan instead. At Home Tax Solutions, we know the ins and outs of property taxes, and we can help you get out of the property tax debt cycle and start enjoying your home again. If you want to learn more, call one of the five Home Tax Solutions locations across the state; we serve all 254 Texas counties, and our team of experts are always here to help.
San Antonio: 210-951-2211