Understanding Jumbo Reverse Mortgages
in San Jose, California

If you’re over the age of 62, a reverse mortgage in San Jose can be a good way to purchase a new home or add to your retirement (either through a lump sum, a regularly scheduled payout, a line of credit, or some combination of these three). Unfortunately, not everyone qualifies for a reverse mortgage insured by the Federal Housing Administration (FHA). If your home does not qualify, there’s still a way to get a loan, if you need one: a jumbo reverse mortgage. A jumbo reverse mortgage is similar to a reverse mortgage, but there are some key differences.

Jumbo Reverse Mortgage Basics

A jumbo reverse mortgage, also referred to as a proprietary reverse mortgage, is an alternative for borrowers who either: 1. do not qualify for an FHA-insured loan or 2. Need more money than a HECM can provide. The max loan amount for a FHA loan is $509,737.50. The max loan for a Jumbo reverse mortgage is $6,000,000. You may not qualify for a FHA insured HECM. This could happen for a few reasons. Often, the home doesn’t qualify because it is a condo or other planned urban development that has not received FHA approval. More often, the loan amount is too high for an FHA-approved loan. For such cases, lenders offer these specialized reverse mortgage services.

No Federal Insurance

Because a jumbo reverse mortgage is made for borrowers who do not qualify for an FHA loan, it is not insured by the FHA. And since a jumbo reverse mortgage is not insured, you do not have to pay mortgage insurance premiums (MIPs) on the loan. This is a potential benefit to you, as it eliminates these insurance costs associated with a traditional reverse mortgage. Both the HECM and the Jumbo are non recourse loans, so the same protections are offered.

More Borrowing Power

The FHA places a lending limit of $679,650 on a traditional one-family home reverse mortgage loan. Because a jumbo reverse mortgage is not insured by the FHA, these lending limits do not apply. Proceeds from a jumbo reverse mortgage can be as high as $ 500,000 to $6 million, a significant increase in borrowing power. Of course, this loan amount increase depends on the value of your home.

Planning Ahead

While a jumbo reverse mortgage can be appealing, and in fact beneficial, it is not for everyone. Since jumbo reverse mortgages can yield higher loan amounts, the costs to the borrower can increase significantly as well. After all, reverse mortgages are loans, so they accrue interest until the loan term ends. And with a higher loan amount comes higher interest costs. Make sure to take that fact into account.

Another factor to take into account is that jumbo reverse mortgages were designed primarily for high-value residences—condos over $500,000 or homes over about $1.2 million—and may not work well for lower value dwellings. If you can’t get a reverse mortgage because your dwelling is not FHA-approved see what you can do to get FHA approval, or consider a Jumbo.

If you’re considering either a reverse mortgage or a jumbo reverse mortgage, assess your financial situation and plan for your costs. A reverse mortgage calculator can help you determine what kind of reverse mortgage you can afford, and how much money you can afford to borrow. Apply the same cost-benefit analysis to this kind of loan that you would to a home or auto loan.

Are you in San Jose and considering a reverse mortgage? Apply today to get started on your loan.

Reverse Mortgage in
Temecula, California

By now, you’ve probably heard your friends and family talk about reverse mortgages. A reverse mortgage is a great way for older homeowners to take advantage of their home’s equity now. Here are a few ways Trinity Reverse Mortgage can help you achieve your financial goals.

A Quick Look at Reverse Mortgage in Temecula

A home equity conversion mortgage (HECM), or reverse mortgage, is a government-backed loan that allows homeowners who are at least 62 years old, own their home and reside in their home, to borrow against the home’s equity. Unlike traditional home equity loans or second mortgages, a reverse mortgage doesn’t have to be paid back until the borrower no longer resides in the house, the borrower dies and there is no eligible spouse, or the borrower fails to meet the obligations associated with the mortgage.

Is a HECM Reverse Mortgage the Right Type of Loan for You?

A reverse mortgage isn’t for everyone and HUD and FHA have strict borrower requirements that must be met before the loan can be finalized. These requirements include:

• Age requirements
• Primary lien requirements
• Occupancy requirements
• Taxes and insurance
• Maintaining the property in good condition

What is the difference between a HECM and a Jumbo Reverse Mortgage?

A HECM Reverse Mortgage, insured by the FHA, allows older homeowners who meet the requirements to convert a portion of the equity in their home to cash. The lending limit increased to $679,650 on 1-1-2018. Many people use it to supplement their income. Instead of paying the loan back like a traditional mortgage, the money is repaid when the homeowner dies or no longer lives in the home.

A variant on the HECM is the reverse mortgage for purchase. This loan is used to upgrade or downsize to a new home. A HECM for purchase can be a good way to buy a new home without using up all your cash from selling your old home, thus preserving your assets for other uses.

A jumbo reverse mortgage is a non-government-backed mortgage, not insured by the FHA. This means borrowers can borrow more than the FHA’s upper lending limit of $679,650. It works particularly well for homes valued above $1.2 million and older borrowers, typically in their 70s. Jumbo reverse mortgages work well for condos too.  They do not need to be FHA approved condo associations and loans are available for condos values starting at $500,000 up to $6,000,000.

What are the costs and fees associated with a reverse mortgage?

Costs associated with a reverse mortgage can include:

• Loan origination fee – This fee covers the lender’s costs of processing the reverse mortgage. This fee is capped by HUD at $6,000.
• Appraisal – An appraisal is standard in most types of mortgages to make sure the value of the home is accurate. Although appraisal costs can vary, you can generally plan to spend around $550.
• Closing costs and third-party services – Title searches, title insurance, land surveys, and credit check fees are just a few of the additional expenses you might encounter during your mortgage.
• Mortgage insurance premium – This FHA insurance protects both the borrowers and the lenders. Reverse mortgage borrowers cannot be required to repay more than the value of their home, so if the home’s value falls below the amount of the mortgage this insurance will pay the lender the difference.

A reverse mortgage is a great option for older homeowners who want to use the equity in their home during their golden years. It can seem complicated but that’s where Trinity Reverse Mortgage comes in. Let us show you how easy applying for a reverse mortgage can be.

Reverse Mortgage in
Corona, California

A reverse mortgage is a perfect option for those looking to raise some extra spending money even after retirement. But choosing which type is right for your situation can be difficult if you aren’t familiar with the different types of reverse mortgages available to you. Learn about your mortgage options in Corona, California and apply for your reverse mortgage today!

HECM or Jumbo Reverse Mortgage? Which is right for your Corona home

There are many different options when it comes to reverse mortgage loans in Corona, California. Understanding them all and picking the right one for you should not be a difficult task. Take a look at the difference between a jumbo reverse mortgage and a home equity conversion mortgage (HECM) in Corona and decide which type of mortgage works best for you and your situation.

Understanding the difference between a Jumbo and HECM Reverse Mortgage

A jumbo reverse mortgage and a HECM reverse mortgage have many similarities.  They both follow FHA guidelines for a qualifying property and to a large extent, the income and payment history financial assessment guidelines. Only with a HECM can you purchase a home.  Jumbos cannot be used to purchase a home.  The Jumbos can be used to refinance just like the HECM.   Typically a reverse mortgage for purchase is used to sell an existing home and move into a smaller or lower priced home.  But sometimes the HECM for purchase is used to trade up in home value.  If the new home is more expensive the reverse mortgage can help finance it without the need for a monthly mortgage payment. (You will still be responsible for the property taxes, hazard insurance and HOA) If it’s less expensive the reverse mortgage can keep some proceeds from the sale liquid instead of tying them up in the new home.

There are a few distinct differences that will push you to one side or the other. Reverse mortgages both have upfront fees.  Jumbo and HECM reverse mortgage closing costs are similar, but there is no mortgage insurance with the Jumbo.   This can be a significant cost which could be as high as $679,650 x 2% = $13,593.

Jumbo reverse mortgages allow you to borrow more money than a HECM mortgage. A HECM reverse mortgage lending limit is $679,650, which means that if your home is valued above that amount, that excess value would not be considered. If you have a home that is worth more than that amount and you want to borrow more than that, you should consider a Jumbo reverse mortgage.  The Jumbo lending limit is $4,000,000 and home value considered will max out close to $8,000,000.

However, a jumbo reverse mortgage does not work as well for single-family residence under $1,200,000. This is because of how age factors into loan amounts and interest rate. The interest rates are better with the HECM’s, so those are always the first choice to recommend.  But at $1.2M and above, the amount that can be loaned with Jumbos start to exceed the amount available via the HECM. Jumbos work better if the home is above $1,200,000 million and the owners are at least in their 70s.  Jumbos for condos compete against HECMs starting at $500,000 and higher if the condo is Non-Conforming and does not qualify for a HECM.

A HECM reverse mortgage is insured by the Federal Housing Administration (FHA) which is part of the HUD.  A HECM is not a government loan or done through a government agency.  FHA insures the loan and set up the guidelines to be followed, but independent lenders are the ones that actually make the loan. The Jumbo reverse mortgages are privately guaranteed by the lender because they are non-recourse loans. Because of this, jumbo reverse mortgages are just as safe as a HECM.

With a reverse mortgage, you can enjoy your retirement without having to give up your income. Learn more about the different types of reverse mortgage options available in Corona, California and apply for yours today!

Reverse Mortgage in
Pasadena, California

What is a Reverse Mortgage?

A reverse mortgage is a loan that essentially lets you trade equity in your home for income. If you are a homeowner 62 years old or older, you have the opportunity to apply for a reverse mortgage. There are different types of reverse mortgages and a reverse mortgage lender can help interested individuals determine which type of loan is best for their individual situation.

Understanding the Different Types of Reverse Mortgages in Pasadena, CA

A home equity conversion mortgage (HECM) reverse mortgage is insured by the U.S. Federal Government. If you’d like a HECM reverse mortgage, it is only available through an FHA-approved reverse mortgage lender, or mortgage broker, like Trinity Reverse Mortgage.

A HECM for Purchase reverse mortgage allows individuals to use the funds gained from their reverse mortgage to buy another home. After providing a down payment, the money from a reverse mortgage covers the rest.

A jumbo reverse mortgage is for people who have high-value homes and would like access to more money than the FHA’s upper limit of $679,650. Through a jumbo reverse mortgage, homeowners with expensive properties can take fuller advantage of their equity.

Payments from a HECM reverse mortgage can be made as payments for life, in a lump sum, as an equity line, or a combination of these options.  Payments from a Jumbo can be taken as a lump sum and a credit line.

Reverse Mortgage Rates to Expect in Pasadena

Like all loans, reverse mortgage loans have interest that accrues on the initial loan balance. You can choose from a fixed,  annually adjustable or monthly adjustable interest rate. Reverse Mortgage Alert maintains a table showing average monthly rates in California from Jan. 1, 2015 to two months before the current month. For a more accurate quote for your situation, contact Trinity Mutual at 1-877-752-4725 or apply for a reverse mortgage now.

What Are the Costs of a Reverse Mortgage?

There are several costs associated with a reverse mortgage. Most of these costs are one-time cost, excet the monthly MIP.  An experienced reverse mortgage broker will be able to help you assess the costs.

• Upfront Mortgage Insurance Premium (MIP)
• Monthly Mortgage Insurance Premium (MIP)
• Loan origination fee
• Appraisal
• HUD-approved counseling
• Closing costs

Questions to Ask Your Reverse Mortgage Broker

When you speak to an experienced reverse mortgage broker, your agent should be able to answer all of your questions. The more questions you ask, the more confident you will feel in your decision to get a reverse mortgage loan. A mortgage broker can answer all of your reverse mortgage questions and help you better understand the entire process.

The following are a few questions it may be helpful for you to discuss with your reverse mortgage broker.

• How does age affect the amount I am allowed to borrow in a reverse mortgage?
• Does my family have to pay the remainder of my loan after I pass on?
• Do I still own my home after a reverse mortgage?
• What is the difference between a mortgage lender and a mortgage broker?
• How do I find a mortgage lender?
• How do the reverse mortgage payments work?
• What are the pros and cons of a reverse mortgage?

Ready to take the next step? Apply today for a reverse mortgage with the experts at Trinity Mutual!

Trinity Reverse Mortgage in
Contra Costa County, CA

Real estate comes at a prime price in Contra Costa County, California. With house prices among the highest in the nation, it’s not easy for anyone to afford the cost of living. But if you’re a senior with a considerable amount of equity in your home, there is a solution that could work for you. What if we told you that Trinity Mutual could take away your house payment and offer you supplemental income in return? It may sound too good to be true, but it’s not. Of course, you would still be responsible for paying hazard and flood insurance premiums, property taxes, and other things like HOA fees. And you would still own your home.

Is a reverse mortgage in Contra Costa County, California, right for me?

The first step to deciding if a reverse mortgage is right for you is to look at your finances. Will you have enough money to maintain your lifestyle throughout retirement? If not, do you have a plan in place to supplement that income? If you answered both of those questions with “no,” a reverse mortgage may be a good choice for you. Financing through a reverse mortgage lender can be a way to enjoy your retirement more fully by capitalizing on the equity you’ve already accumulated in your home.

What are the pros and cons of getting a reverse mortgage in Contra Costa County, California?

There are pros and cons to getting a reverse mortgage. Tapping into the equity in your home without having to sell is a big pro, and if you want to sell your house and downsize to a new home, you can finance part of the purchase through a reverse mortgage for purchase.

Although a reverse mortgage is a viable and sound financial option for many seniors in your area, it may not be right for you. A reverse mortgage lender may remove the pressure of making your monthly mortgage payment and offer you a supplemental income in its place, but it doesn’t remove the interest, which keeps accruing, and monthly MIP adds another ½% of interest. You do have the option to make payments on the reverse mortgage of any amount at any time.  You could pay the amount of interest that accrues or pay nothing at all, your choice.  There is no pre-payment penalty ever.

You may not have to cover the cost of the mortgage during your lifetime, but somebody will at some point (likely your heirs), and again you will still need to pay property taxes, insurance premiums, and things like HOA fees, as well as keeping the home in good repair, and keeping it as your primary residence. These requirements are conditions of the reverse mortgage.

There are protections put in place with a reverse mortgage that ensure that the loan balance can never exceed the current value of the home.  For example, if when you decide to sell the balance is $300,000 and it happens to be 2008 and the values of the homes have plummeted to $200,000.   You are protected and you cannot owe more than the value of the home.  That is why it is insured, for your protection.   This scenario is unlikely, but it illustrates the power of the FHA mortgage insurance for the benefit of the borrower(s).  Work with a Trinity Reverse Mortgage representative to find the best package for your specific situation.

What is the difference between a HECM and Jumbo Reverse Mortgage?

If your home is worth $1,200,000 or more, or you have an unapproved condo worth $500,000 or more, you would may be better off with a Jumbo Reverse Mortgage.  If you qualify for a HECM and a Jumbo, we can list the benefits of both types of loans and let you choose which is best.  In some cases, you may not qualify for a traditional HECM loan without bringing in some additional cash to close the loan.   Or you have a Condo that is not FHA approved, and then a Jumbo loan does not have to be FHA approved and therefore would be the best option. In that case, you could go with a jumbo reverse mortgage. The Jumbo loans offer fixed rates and a credit line over the next 5 years.  The advantage of the Jumbo is that the loan amounts are much higher.  For example, the max loan with a HECM is $509,737.50.   The max loan with a Jumbo is $4,000,000.00.  Because these loans are not FHA-insured and investor backed, you can borrow above the FHA lending limit, and they are a non-recourse loan just like the FHA loan.  So, the Jumbo has the same protection for homeowners and their heirs.

Understanding reverse mortgage rates in Contra Costa County, California

Reverse Mortgage Alert maintains a table showing average monthly reverse mortgage HECM rates in California from Jan. 1, 2015 to two months ago, but the table shows average rates for the whole state, so your rate may differ. There are also a number of reverse mortgage fees and expenses that will be slightly different with each reverse mortgage lender.

To learn more about the costs and fees involved in the reverse mortgage process, see Trinity’s summary of costs and fees of a reverse mortgage. Though there are ongoing fees, most of these costs and fees are up-front, one-time fees.

The costs and benefits of getting a reverse mortgage loan in Contra Costa County, California

There are some costs associated with taking out a reverse mortgage loan from a trusted lender, but the costs shouldn’t stop you from getting a loan. They can usually be rolled into the sum of your loan, so you won’t have to worry about paying them up front.

The benefits of getting a reverse mortgage loan are far greater. Not only will you enjoy the freedom of no monthly house payment (be sure to keep paying property taxes, insurance, and other fees), but you will also have the financial leeway of enjoying the fruit of your home’s equity.

Both these benefits can be a tremendous financial asset at a time when living is more expensive than ever. To find your way to financial freedom, call Trinity Mutual today to explore your reverse mortgage options. Apply now!

Reverse Mortgage in
Anaheim, California

Just because you’ve retired, doesn’t mean you’re no longer interested in making money or having the same monthly income stream. With a reverse mortgage, you can enjoy your well-deserved retirement without giving up your income!  But what are your options when it comes to a reverse mortgage in Anaheim? Know what to expect, the costs, and the benefits of a reverse mortgage, and start yours today!

Types of Reverse Mortgages

Home Equity Conversion Mortgage

A home equity conversion mortgage, also called a HECM, is a type of reverse mortgage that ensures you will never have to repay more than the value of the property, even if the property value has dropped. Any equity left over can be given to heirs, and heirs can also purchase the property for 95% of the market value. A HECM is widely used by people who want to stay in their house and still use the equity in their home.

Reverse Mortgage for Purchase

A HECM for purchase is designed for people who would like to purchase a home and not have a mortgage payment (the taxes & Insurance payments would still continue). Whether it’s to move closer to children, a lateral move or downsize. Common uses for this type of mortgage include making up the difference between the value of the old house and the cost of the new or keeping funds from the sale of the old house liquid rather than tying them up in the new house.

Jumbo Reverse Mortgage

HECMs are FHA-insured and subject to the FHA’s upper lending limit of $679,650. Jumbo reverse mortgages are designed to make the benefits of a HECM available to people with high-value homes. They’re not insured by the FHA, so they’re not subject to the upper lending limit. They work particularly well for older lenders and homes above $1.2 million.

Reverse Mortgage Costs and Fees

There are many different costs associated with any type of mortgage. For a reverse mortgage calculator, see Trinity’s summary of costs and fees of a reverse mortgage. Most of these costs and fees are up-front, one-time fees, but there are ongoing fees.

Up-front costs

• Loan origination fee – can vary and depends on the type of mortgage program you have, but this fee is capped at $6,000 so you would never pay more than that despite the value of your home.
• Appraisals – typically cost around $550, but can cost more for a special property type.
• Closing costs and third-party services – include title insurance, inspections, property taxes, etc. They can be paid upfront or financed.
• Up-front mortgage insurance premium – The upfront MIP rate is 2.0% of the appraised value.

Annual costs

• Monthly mortgage insurance premium – monthly charge of .50% on top of the up-front MIP. This was reduced from 1.25% to .50% on 1-1-2018.
• Interest – Interest types available are Fixed interest rates, annually adjustable and monthly adjustable rates.

Benefits of a Reverse Mortgage

A Credit Line is where the money making comes in. If you choose a Line of Credit then the line of credit grows by the rate of interest you are being charged on the loan balance plus the ongoing monthly mortgage insurance premium.  For example, if the Initial interest rate is 4.277% and the ongoing MIP is .5% then the credit line grows by 4.777%.   So if there is $100,000 in the credit line and after a year the available line of credit would grow to $104,277 after 12 months. It would actually be more than that because the compounding would be monthly and not annual, but I think you get the point.

The amount of money you release from your equity on your HECM depends on a few things. First, the age of the youngest borrower or eligible non-borrowing spouse. Second, the current interest rate. Lastly, the lesser of appraised value, or the HECM FHA mortgage limit of $679,650. If you purchased the home in the last 12 months, you must use the purchase price.   Typically the older you are and the more your house is worth, the more money (equity) you can receive.

The lending limits for jumbo reverse mortgages are set by reverse mortgage lenders.  As of June 2018, the lenders will cap the home values at $8.0 million.  And the Loan to value range is approximately 24% to 50% depending on the age of the youngest borrower.

There are many ways you can receive your payments. For an adjustable interest rate mortgage, payments can be received as equal monthly payments, unscheduled payments when you choose, a lump sum, or a mixture of all three. For a fixed interest rate mortgage, payment is received as one payment at the mortgage closing for HECM’s.   For Jumbos, you can either take a lump sum or put the excess in a credit line.

There are many benefits to a HECM reverse mortgage in Anaheim. Learn more about HECM reverse mortgages and apply for yours today!

Reverse Mortgage in
Santa Monica, California

Are you ready to put your home’s equity to work for you? A Trinity Reverse Mortgage allows older homeowners to take advantage of their home’s equity and receive cash to use for daily expenses, big purchases, vacations, or anything else they need. Here are some ways Trinity Reverse Mortgage can help you achieve your financial goals.

A Quick Look at Reverse Mortgage in Santa Monica

It’s your money so why should it be tied up in your home? A home equity conversion mortgage (HECM), or reverse mortgage, gives homeowners the freedom to utilize the equity in their home. This special loan is for homeowners that are at least 62 years old, own their home, and reside in their home. What makes a reverse mortgage unique is it doesn’t have to be paid back until the borrower no longer resides in the house, the borrower dies and there is no eligible spouse, or the borrower fails to meet the obligations associated with the mortgage.

Reverse Mortgage Alert’s table of average monthly reverse mortgage rates in California from Jan. 1, 2015 to two months ago can help get data if you plug the rates into a reverse mortgage calculator, but the table averages rates from the whole state, so your area may differ. Speaking to the experts at Trinity Reverse Mortgage will get more accurate figures for you personally.

Is a HECM Reverse Mortgage the Right Type Of Loan For You?

Even if you meet the qualifications, a reverse mortgage isn’t for everyone and there are strict borrower requirements that must be met before the loan can be finalized. These requirements include:

• Age
• Reverse mortgage as primary lien
• Primary residence requirements
• Keep paying taxes and insurance
• Maintain the property in good condition

How Does a HECM Reverse Mortgage Compare to a Jumbo Reverse Mortgage?

A HECM reverse mortgage allows older homeowners who meet the requirements to convert a portion of the equity in their home to cash. Many people use it to supplement their income. Instead of paying the loan back like a traditional mortgage, the money is repaid when the homeowner dies or no longer lives in the home.

A variant called a HECM for purchase allows borrowers to finance part of the purchase of a new home through the mortgage, keeping some of the proceeds from the sale of the old house for other uses.

FHA insurance guarantees that HECM borrowers won’t be stuck with an underwater mortgage—owing more than the house is worth. The FHA’s upper lending limit is $679,650.

A jumbo reverse mortgage is a proprietary mortgage which follows FHA guidelines but is not FHA-insured. This makes it well-suited for borrowers with homes valued at about $1.2 million and up who want to borrow more than the FHA’s upper lending limit of $679,650. Also, Condos that are valued at about $500,000 and up may use the Jumbo reverse mortgage.

What are the Costs Associated With a Reverse Mortgage?

Like with any mortgage, there are some costs associated with a reverse mortgage that can include:

• Loan origination fee – HUD caps this fee at $6,000. The minimum origination fee is $2,500.
• Appraisal – A standard tool in mortgages to make sure the value of the home is accurate. Appraisal costs can vary, but you can generally plan to spend around $550.
• Closing costs and third-party services – Include things like title searches, title insurance, land surveys, and credit check fees, among other expenses.
• Mortgage Insurance Premium – This Federal Housing Administration requirement ensures borrowers get the loan payments in the amount they expect, and that if the homes’ value falls below the amount of the mortgage, lenders still get repaid the full amount of the loan. Currently, FHA charges 2% of the home’s value up to $679,650.  So that would be $13,593 on a home with a max value of $679,650.   If the home was worth $200,000 x 2% = $4,000 MIP.

A reverse mortgage is a great option for older homeowners who want to use the equity they’ve built up over the years without selling their house. It can seem complicated but that’s where we at Trinity Reverse Mortgage come in. Let us show you how easy applying for a reverse mortgage can be.

Reverse Mortgage in
Santa Ana, California

As you are heading into retirement, you are probably looking into ways you can continue to receive an income, whether through investments or other work. One option that should not be overlooked is a reverse mortgage.

What is a reverse mortgage?

A reverse mortgage is for homeowners over the age of 62 who are looking to increase their income during retirement. It is a loan that allows homeowners to tap into the home equity they have built up. Instead of making a monthly mortgage payment, you receive money from the lender that does not have to be paid back until you leave the home.

Why a reverse mortgage is the right option for you

There are many benefits to a reverse mortgage. A reverse mortgage is an easy way to secure your future and receive extra money as your working days come to an end, and that’s just the tip of the iceberg. Learn more about your reverse mortgage options in Santa Ana and what one can do for you!

Types of Reverse Mortgages

A reverse mortgage, also called a home equity conversion mortgage (HECM), comes in three types, including the Standard HECM,  a HECM for purchase and a jumbo reverse mortgage. A reverse mortgage and reverse mortgage for purchase are FHA-insured and subject to the FHA’s upper lending limit of $679,650.  The Jumbo reverse mortgage offers the same protections to the borrower(s) and their heirs as the HECM.

If you are looking to make a change, you can use a reverse mortgage for purchase to buy a new home for a change of scenery or just something smaller as you head into retirement. The reverse mortgage allows you to use assets from the sale of the home for other purposes than equity in a new home.

A jumbo reverse mortgage is not backed by the FHA, so it is not subject to the FHA’s lending limit. It’s designed for condos worth $500,000 or more, and homes above $1,200,000. Some people tap into jumbos for cash during a bear market rather than disturbing their investments. Jumbos often work better for older homeowners, typically in their 70s, than for younger homeowners.

Remain in your home

One of the main benefits of a reverse mortgage is that you can remain in your own home without monthly mortgage payments, though you remain responsible for your property taxes, homeowner’s insurance and similar fees like HOA fees.

You can also use a reverse mortgage to refinance out of super high rates. You can make regular payments on a reverse mortgage, or not. It’s up to you. Just be sure to maintain your property, pay your insurance, property taxes and other fees, and keep the house as your primary residence.

A reverse mortgage does not have to be paid back until the homeowner dies, moves away, or fails to meet the obligations of the loan. However, the loan can be paid off at any time before it is due. You retain the remaining equity since you own the home.  A common way to repay the loan is to sell the house, but that’s not the only option.

It’s your money

There are no stipulations to how you can spend the money you receive from your reverse mortgage. The amount you get depends on your age, the value of your home, and the interest rate. For a reverse mortgage calculator see our summary of costs and fees of a reverse mortgage. For more assistance figuring out costs and how much money you will be able to access, call Trinity Reverse Mortgage at 1-877-752-1048 and talk with a representative.

When you get the money, you can use it on anything from groceries, to paying off debts, to going on a vacation! Did we mention that the income you get is also tax-free? (Please consult your tax professional)

The possibilities are amazing and endless with a reverse mortgage. Learn more about reverse mortgages in Santa Ana and apply for one to start your future today!

Reverse Mortgage in
Napa County, California

If you’re a senior living in Napa County, California, you may want to consider investing in a reverse mortgage service to generate additional income while you live out the twilight years of your life. You don’t need us to tell you that living expenses in Napa County, California, are difficult to keep up with. The weather is ideal, the scenery is breathtaking, and you probably don’t ever want to leave—but you’ll have to pay for it one way or another. With a reliable and trustworthy reverse mortgage broker like Trinity Mutual, you can enjoy extra income in peace.

What is a reverse mortgage?

A reverse mortgage in Napa County, California, through Trinity Mutual, is a safe way to access the equity you’ve been building in your house all these years. When you apply for a reverse mortgage, Trinity Mutual will help you find a loan to pay off your existing loan and eliminate monthly mortgage payments. You will still be responsible for hazard and flood insurance, property taxes, HOA or other fees, and maintain your home in good condition.

This new loan will be used to supply you with income installments that you can receive monthly, in a lump sum, as a credit line, or in any combination of the three. The program is flexible, and how you get your money is completely up to you.

Understanding the different types of reverse mortgages in Napa County, California

There are three different types of reverse mortgages you can get in Napa County, California: A home equity conversion mortgage (HECM), a HECM for purchase, and a jumbo reverse mortgage. A HECM reverse mortgage is an FHA-insured loan program that ensures that repayment for the loan will never be more than the value of the home.

If you opt for a HECM for purchase loan, it operates in the same way as a HECM loan except you can use it to upgrade or change homes while still enjoying the benefits of supplemented income with a reverse mortgage.

Lastly, the jumbo reverse mortgage is for those who have high-value homes and want to borrow more than the FHA upper lending limit of $679,650. Because jumbos are not insured by FHA they are not subject to FHA’s lending limit or some FHA regulations and protections. They’re designed for condos worth $500,000 or more, and homes above about $1,200,000. Call Trinity Mutual to find out which loan will work best for your lifestyle.

What are the costs of a reverse mortgage?

Not many up front! Reverse mortgages have closing costs and other fees, but the good news is that most of those costs can be lumped into the price of the loan, which means you won’t have to pay them until the loan is paid back. Talk to your loan officer at Trinity Mutual to get a clear understanding of what costs you’ll be expected to pay and how they will be accounted for.

Things to consider when choosing a reverse mortgage lender

There are many benefits to a reverse mortgage. Let Trinity Mutual help explain how a reverse mortgage may help in your situation.  Trinity Mutual has been exclusively in the business of helping seniors make informed decisions about a reverse mortgage since 2004.  Our style is straightforward and honest.  We may ever recommend that you not do a reverse mortgage if we don’t feel it is the right product at this time. But don’t miss out on the travel, leisure, and relief you’ll experience from no house payments and a supplemented income just because of the scams! Most lenders are financially savvy people hoping to help seniors fund their lifestyle throughout retirement. With the right lender, a reverse mortgage can be a tremendous asset in your life. Turn to the trusted experience of Trinity Mutual to see how a reverse mortgage can benefit you. Apply now!

Reverse Mortgage in
Irvine, California

Using a reverse mortgage is a key element when planning for retirement. It’s something you may never have considered, especially if you own your home free and clear. Why encumber it with a mortgage? But there are circumstances where you might want or need to tap into the equity in your home without selling. Trinity Reverse Mortgage is a mortgage broker and can help you find the right reverse mortgage services in Irvine, California so you can get the most out of your home’s equity and provide a more comfortable future for you and your family.

How a Reverse Mortgage Can Benefit You in Retirement

So, what is a reverse mortgage and how can it help you? A reverse mortgage is a loan available to homeowners 62 years or older. It gives you the opportunity to use part of the equity in your home and turn it into cash. A reverse mortgage uses the most valuable asset you have–your home–to help you plan for your future and increase your income stream, perfect for retirees.

Types of Reverse Mortgages

Formally known as a home equity conversion mortgage (HECM) a reverse mortgage converts equity in your home to cash. No monthly mortgage payment*  is required for as long as you live in the home and continue to meet your obligations such as property taxes, homeowners’ insurance, and property maintenance.

This means you can use a reverse mortgage to pay off a traditional mortgage, as long as your equity is greater than the mortgage balance, and eliminate monthly mortgage payments.*

*(Although you would still be responsible for the items mentioned above, property taxes, hazard insurance, and other fees, like homeowners’ association fees.)

You can also use a type of HECM, the reverse mortgage for purchase when you sell your home and finance the purchase of a new home without tying up all the money from the sale of your home in the new home, which preserves your funds for other uses.

The FHA backs HECMs. Their upper lending limit is $679,650. For high-value homes a loan not backed by FHA is available. A jumbo reverse mortgage works particularly well for older lenders, typically in their 70s, with homes valued above $1.2 million. Some borrowers tap into a jumbo reverse mortgage during economic downturns rather than selling investments at a loss.  If you have a Condo Association that does not have FHA approval and you cannot do a HECM, you may qualify for a Jumbo on the Condo.  Jumbos for Condo’s start at a home value of $500,000 and higher.

Reverse Mortgage Pros and Cons

All mortgages have associated costs and benefits, so a look at the benefits and costs of a reverse mortgage can help you decide if one is right for you.

What are the benefits of a reverse mortgage?

When you retire, your income is limited—unless you’ve made remarkable strides with investments or have other sources of residual income. Even if you think your retirement is set in stone, life happens and can drain your assets or drastically change your plans.

With a reverse mortgage you can choose to take your funds as a lump sum, as a steady stream of monthly installments for a set period of time or as long as you live in your home, or you can open a line of credit to use as needed. And you can use two or all three of these options in combination.

You can also choose whether you want to lock in a fixed interest rate or go with a variable rate. While a fixed rate has the advantage of stability it requires you to take a lump sum up front and effectively limits your loan to 60% of your available funds, the FHA’s limit on disbursement during the first year of a loan.  Unless your loan balance is higher than 60% of the available funds, then you can take an additional 10% of available funds.

If you want to access your funds using other options choose an adjustable rate. You might be able to get a slightly lower interest rate with an annually adjustable rate or monthly adjustable rate mortgage.

What are the costs or drawbacks of a reverse mortgage?

In considering reverse mortgage lenders and their rates, keep in mind that the value of the estate inheritance may decrease over time as you convert your equity into cash and interest accrues.

It’s also important to remember that the loan is due upon the last borrower’s death, or when it ceases to be the primary residence of at least one borrower, such as if you enter a nursing home or other facility, or move in with children. If you’re planning on leaving the home as part of an inheritance, you should discuss these things with your heirs.

This is just a general overview of what a reverse mortgage is and how it can benefit your retirement. For more information, visit our FAQs section. If you need a reverse mortgage calculator, see our summary of costs and fees of a reverse mortgage.

If you need more assistance figuring out what the costs will be for a reverse mortgage and how much money you will be able to access, feel free to call Trinity Reverse Mortgage at 1-877-752-1048 and talk with a representative.

Trinity Reverse Mortgage is committed to giving you the highest quality service and information, and to making sure you fully understand the risks and benefits of a reverse mortgage.

Get started on the path to a more comfortable retirement now! Apply today and see how we can help you prepare for your future.