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!