Reverse Mortgage in
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
- 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!