Trinity Reverse Mortgage in
Los Angeles County, California
As many people approach their later years, they wonder about a reverse mortgage as a way to improve their quality of life. A reverse mortgage is an opportunity to draw on the equity you have built up in your home over time. Not only does it give you some extra money to help deal with expenses, but as long as you keep it as your primary residence, maintain the home and keep up with insurance and taxes, you don’t have to worry about needing to vacate your home at some point or give up the comfort of living on your property.
This is not to say that a reverse mortgage is the right choice for everyone. Reverse mortgages have pros and cons and you should make sure that your circumstances are right for a reverse mortgage. Los Angeles County, with its high property values, presents unique opportunities for jumbo reverse mortgages. We have outlined some of the pros and cons of these types of reverse mortgages in order to help you decide if they are right for you.
Benefits of getting a Jumbo Reverse Mortgage in Los Angeles County
The largest benefit of a jumbo reverse mortgage is access to money you have earned. If you own property in Los Angeles County, that could potentially be a lot of money. At one time it made sense to put your money into a home, but as you age and expenses such as medical bills continue to mount, it might make sense to begin to take money out of that investment.
Another benefit of getting a jumbo reverse mortgage is its value as a financial planning tool. For example, in a market downturn, you may prefer to draw on a jumbo reverse mortgage rather than selling your investments.
A jumbo reverse mortgage also has the advantage a regular reverse mortgage offers of allowing you to access your equity without selling your home. You get to stay in your home. Indeed, one requirement for a reverse mortgage is to maintain the home as your primary residence. However, If you are planning to sell your house and, say, buy a home in a retirement community, a reverse mortgage for purchase can be a good option for buying the new house without sinking all the proceeds from your home sale into it.
If you don’t quite qualify for a jumbo loan, a HECM loan might be your answer. A HECM Reverse Mortgage is insured by the FHA and allows older homeowners who meet the requirements to convert a portion of the equity in their home to cash. The lending limit is the lower of your home value or $679,650, whichever is less. Many use this particular reverse mortgage to supplement their income. Instead of paying the loan back in the same way as a traditional mortgage, the money is repaid when the homeowner dies or no longer lives in the home.
Costs of a Reverse Mortgage in Los Angeles County
Reverse Mortgage Alert maintains a table showing average monthly reverse mortgage rates in the State of California from Jan. 1, 2015 to two months before this month, but it’s an average for the whole state, so your rate may differ. The costs of a reverse mortgage can vary depending on your reverse mortgage company, and on factors like your age, state, how much you borrow, and whether you opt for the savings offered with an annually adjustable rate or monthly adjustable rate mortgage.
There are also a number of reverse mortgage fees and expenses that will be slightly different with each reverse mortgage lender. If you need a reverse mortgage calculator, here at Trinity Mutual we have a 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 us at 1-877-739-2510 and talk with a representative.
If you are ready to get started on a reverse mortgage, apply now!