We all know some members of the Texas Legislature ain't got no good grammar. It allows the elderly to take out reverse mortgages. Now strictly speaking, reverse mortgages are simply another kind of home equity loan. And we thought we settled that question two years ago when Texans voted to allow them in the state. But someone in the Texas House of Representatives, in rewriting the home equity measure passed by the Texas Senate, messed up by a word.
Reverse mortgages are home equity loans with a big difference.
You get the money and don't have to make payments on either the principle or the interest. Reverse mortgages are designed for people age 55 and older who need more income in their retirement years. By taking a reverse mortgage, they can get regular monthly payments from the lender and continue to live in their home. There are no particular income limits to qualify for a reverse mortgage. You just need to own a house with sufficient equity.