More on Proposition 7 for Texas Reverse Mortgages

Proposition 7 - “The constitutional amendmentauthorizing line-of-credit advances under a reverse mortgage.”
A reverse mortgage is a special type of home equity loan for senior citizens (62 years and older). Reverse mortgages allow owners to convert some of the equity in their homes to cash. The loan does not usually have to be repaid during the homeowner’s lifetime. Cash from a reverse mortgage does not affect the homeowner’s Social Security or Medicare benefits. Currently under a reverse mortgage, Texas homeowners can borrow only a lump-sum or receive payments at predetermined intervals. The amendment would allow seniors to borrow using a line of credit, when needed.