Of the 17 proposed changes to the Texas Constitution on the ballot Tuesday, seven relate to how people make, spend, borrow and save money. They range from putting an end to local property taxes on leased vehicles that are mainly for personal use to letting urban homesteaders use up to 10 acres as collateral for home equity loans. But the most confusing proposed constitutional change is Proposition 2. Reverse mortgages let homeowners age 62 or older live off the equity in their homes without selling them.
Borrowers get a lump sum or a monthly payment for a fixed term or the rest of their life.
The amount you can borrow depends on your age, the value of your home and how much equity you have it in it. Lenders prefer to make these loans to people age 70 or older who own 90 percent or more of their homes. Unlike home equity loans, reverse mortgages are repaid with interest only when the home is sold or the borrower dies, whichever comes first. Home equity loans are second mortgages that have to be repaid immediately in monthly installments. Protection from foreclosure People living on fixed incomes may find it difficult to make monthly mortgage payments.