Reverse Mortgage in
Santa Ana, California
As you are heading into retirement, you are probably looking into ways you can continue to receive an income, whether through investments or other work. One option that should not be overlooked is a reverse mortgage.
What is a reverse mortgage?
A reverse mortgage is for homeowners over the age of 62 who are looking to increase their income during retirement. It is a loan that allows homeowners to tap into the home equity they have built up. Instead of making a monthly mortgage payment, you receive money from the lender that does not have to be paid back until you leave the home.
Why a reverse mortgage is the right option for you
There are many benefits to a reverse mortgage. A reverse mortgage is an easy way to secure your future and receive extra money as your working days come to an end, and that’s just the tip of the iceberg. Learn more about your reverse mortgage options in Santa Ana and what one can do for you!
Types of Reverse Mortgages
A reverse mortgage, also called a home equity conversion mortgage (HECM), comes in three types, including the Standard HECM, a HECM for purchase and a jumbo reverse mortgage. A reverse mortgage and reverse mortgage for purchase are FHA-insured and subject to the FHA’s upper lending limit of $679,650. The Jumbo reverse mortgage offers the same protections to the borrower(s) and their heirs as the HECM.
If you are looking to make a change, you can use a reverse mortgage for purchase to buy a new home for a change of scenery or just something smaller as you head into retirement. The reverse mortgage allows you to use assets from the sale of the home for other purposes than equity in a new home.
A jumbo reverse mortgage is not backed by the FHA, so it is not subject to the FHA’s lending limit. It’s designed for condos worth $500,000 or more, and homes above $1,200,000. Some people tap into jumbos for cash during a bear market rather than disturbing their investments. Jumbos often work better for older homeowners, typically in their 70s, than for younger homeowners.
Remain in your home
One of the main benefits of a reverse mortgage is that you can remain in your own home without monthly mortgage payments, though you remain responsible for your property taxes, homeowner’s insurance and similar fees like HOA fees.
You can also use a reverse mortgage to refinance out of super high rates. You can make regular payments on a reverse mortgage, or not. It’s up to you. Just be sure to maintain your property, pay your insurance, property taxes and other fees, and keep the house as your primary residence.
A reverse mortgage does not have to be paid back until the homeowner dies, moves away, or fails to meet the obligations of the loan. However, the loan can be paid off at any time before it is due. You retain the remaining equity since you own the home. A common way to repay the loan is to sell the house, but that’s not the only option.
It’s your money
There are no stipulations to how you can spend the money you receive from your reverse mortgage. The amount you get depends on your age, the value of your home, and the interest rate. For a reverse mortgage calculator see our summary of costs and fees of a reverse mortgage. For more assistance figuring out costs and how much money you will be able to access, call Trinity Reverse Mortgage at 1-877-752-1048 and talk with a representative.
When you get the money, you can use it on anything from groceries, to paying off debts, to going on a vacation! Did we mention that the income you get is also tax-free? (Please consult your tax professional)
The possibilities are amazing and endless with a reverse mortgage. Learn more about reverse mortgages in Santa Ana and apply for one to start your future today!