Reverse Mortgages in
Manhattan Beach, California
If you’re over the age of 60 and living in Manhattan Beach, you may already know that a reverse mortgage can help you turn the equity on your home into cash. If you’re living in a house valued over $1.2 million, you may have heard of jumbo reverse mortgages. A reverse mortgage can be great for you if you’re looking to supplement your retirement income, and a reverse mortgage for purchase can be useful if you want to sell your home and buy a new one.
If you’re considering this financial decision, you may be wondering what the reverse mortgage rates are in your neck of the woods, and what a good rate is. We’ll help you navigate the sometimes confusing world of reverse mortgage rates to help you make the best financial choices on a reverse mortgage.
How Reverse Mortgage Rates Work
Just like a regular mortgage, your reverse mortgage loan accrues interest with time. However, there is a stark difference between how you pay the interest. With a reverse mortgage, you don’t pay interest until the end of the loan. That occurs when you sell your home, move out of the home, or fail to comply with any other terms of the loan. (Such as paying property taxes or hazard insurance)
The amount you borrow in a reverse mortgage depends on your age, your home value, and the interest rate you get. The lower your reverse mortgage rate, the more you can borrow. So, if you think you can get a lower rate, you may want to wait to see if rates dip. If you don’t think you’ll get a lower rate, you may want to jump on it before it goes back up again. Now that you know the gist of how reverse mortgage rates work, you’re ready to learn about the different kinds of rates.
Fixed Vs. Variable Reverse Mortgage Rates
There are two kinds of interest rates offered by reverse mortgage lenders: fixed and variable. Government agencies and investors determine fixed rates, and the rate does not change for the term of your loan. Fixed rates tend to be higher than variable rates. A variable rate depends on an index of interest rates, plus a margin added by the lender. Variable rates change, either yearly or monthly, so your rate could rise or fall. A fixed rate reverse mortgage causes you less risk, while a variable reverse mortgage has greater potential to save you money. A reverse mortgage calculator can help as you figure your expenses.
Qualifying for a Reverse Mortgage
If you find beneficial reverse mortgage rates in Manhattan Beach, you’ll want to make sure you qualify for a reverse mortgage. There are several requirements that any applicant for a reverse mortgage must comply with, such as minimum age and home occupancy. Once you’re sure that you check off everything on the list, you’ll be ready to browse the reverse mortgage lenders in Manhattan Beach to get approved.
While you’re considering a reverse mortgage, think about how you want to receive your money. You can take it in a lump sum, a monthly payment, a line of credit, or any combination of these three.
Are the reverse mortgage rates in Manhattan Beach just right for you to get a loan? If so, apply today to get started on your reverse mortgage.