Reverse Mortgage in
San Francisco County, California
Reverse Mortgages Explained
Sometimes it can seem like you’re the only one struggling to make ends meet throughout retirement, but you’re not alone. Millions of people just like you are turning to financial solutions offered by reverse mortgage lenders. With a reverse mortgage, you can use the equity you’ve built up in your home for decades to make your last season of life a comfortable one. When things like travel, financial peace, and comfortable luxury may have previously seemed out of reach, a reverse mortgage can make them a reality.
In short, a reverse mortgage is another loan offered by a trusted lender to pay off the current loan on your home. You remain on the title as the owner of the property. Then the lender is in a position to not only eliminate your house mortgage payments but to also pay you back with some of the equity you have in your home. You will remain responsible for your property taxes, hazard insurance, and similar fees, like HOA or other association fees.
A reverse mortgage will have to be repaid eventually, but that can usually be done by selling your home after you pass on. The remaining equity will be passed on to your heirs as you wish. The best part about a reverse mortgage is that you can get your money back in whatever way works best for you. Whether it’s in monthly payments, a line of credit, or a lump sum, reverse mortgage lenders are flexible in helping you achieve financial prosperity.
Why you should consider a Reverse Mortgage in San Francisco County
Even people who don’t live in California know that the cost of living—and especially the cost of housing—is difficult to manage. San Francisco County is particularly expensive, but it’s a beautiful place to live. You want to enjoy this area and your community to the fullest in your golden years, so don’t let tight finances rob you of that last opportunity. Using a reverse mortgage to take the weight off your finances during retirement will be an investment that will pay dividends for the rest of your life.
What are the different types of Reverse Mortgage available in San Francisco County
There are three different types of reverse mortgages available in San Francisco County. The first is a HECM mortgage or Home Equity Conversion Mortgage Program. This is your classic FHA-insured and HUD-regulated reverse mortgage. This program protects you from the balance of the mortgage ever being higher than the value of the property. It also allows heirs to purchase the property at 95% Fair Market Value.
The second type of loan is a HECM for Purchase reverse mortgage. This kind of financing is exactly like the classic HECM mortgage except that this loan is used to upgrade to a new home. This can be a good option for buying a new home without tying up all your cash in the new home, thus preserving your assets for other purposes. The upper lending limit for a HECM is $679,650. The amount that would be loaned would be less than the lending limit. The amount would vary based on the age of the youngest borrower.
The third type of mortgage, a Jumbo Reverse Mortgage, is for those who want to borrow above the limit of a HECM mortgage. It is for condos with a value of $500,000 or higher and single-family residences with a value of $1,200,000 or more. Jumbo Reverse Mortgages work better for older borrowers and houses with higher values, so talk to a loan officer at Trinity Mutual to learn if this is a good choice for you.
Average Reverse Mortgage Rates in San Francisco County
Your interest rate for a reverse mortgage can be affected by factors like whether you choose a fixed rate or adjustable rate mortgage. Reverse Mortgage Alert maintains a table showing average monthly rates from Jan. 1, 2015 to two months before the current month.
This tool is useful for getting an idea of trends, but keep in mind that these are averages for the whole State of California, and your rate may differ. You may also be able to get a slightly lower rate for annually adjustable or monthly adjustable rate mortgages.
Fees and Costs of a Reverse Mortgage in San Francisco County
Just as you would get with your typical home loan, a reverse mortgage comes with a variety of fees and costs which include a loan origination fee, appraisal and closing costs, and more. Many if not all of these fees can be lumped into the sum of your loan so you won’t have to pay for them upfront. To learn more about what kinds of costs and fees you can expect from a reverse mortgage, please visit our Costs & Fees of a Reverse Mortgage page.