Reverse Mortgage in
Santa Barbara County, California
You have paid hundreds of thousands of dollars into your home over the years. Now as you age, you are looking for extra money to get by. You know how much value you have built up in your home, but you don’t want to sell it and move. Sound familiar? Many people in this circumstance consider a reverse mortgage loan to help them with some of their expenses.
When it comes to reverse mortgages, there are pros and cons. However, reverse mortgages in Santa Barbara County can be particularly attractive because of the high property values often found there. Of course, home loans for seniors aren’t right for everyone. There are reverse mortgage fees and costs that represent a downside. Here at Trinity Mutual, we can help you understand the pros and cons, the fees and costs, in order to help you decide whether a reverse mortgage is right for you.
What is a Reverse Mortgage?
A reverse mortgage, or home equity conversion mortgage (HECM), is a loan, only available to homeowners aged 62 and over, made to you based on the value of your home. You convert a portion of your equity in your home to cash as a regular payment from the reverse mortgage lenders, a lump sum, a line of credit, or some combination of the three. You retain ownership of your home and you will not be required to sell the home when the loan matures, though selling is a common way of paying off the loan.
If you want to sell your house and buy another one, a reverse mortgage for purchase can be an ideal way to finance the new house without sinking all the money from the sale into the new home.
If your home has a value greater than $1,200,000, and you want to borrow more than the FHA’s lending limit of $679,650, ask about the benefits of a jumbo reverse mortgage. You can create a credit line with a Jumbo too.
A jumbo reverse mortgage is available to borrowers looking to borrow above the limit of a HECM mortgage. This type of mortgage is ideal for borrowers who are older and have equity in condos valued at $500,000 or higher and for single-family residences valued at $1,200,000 or more. Discussing the differences between these loan packages with a Trinity Mutual loan expert can help you decide which is best for you.
Reverse mortgages are particularly attractive to those who have recently retired or for other reasons seen a dip in income or increase in expenses later in life. Many people experience higher medical expenses as time goes on and this can be a reason to take out a reverse mortgage.
What Are the Costs of a Reverse Mortgage?
The costs of a reverse mortgage will vary slightly 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 or monthly adjustable rate mortgage. 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. There are also a number of reverse mortgage fees and expenses that will be slightly different with each reverse mortgage lender.
Our summary of costs and fees of a reverse mortgage will help you figure out what all of those fees and expenses will be. However, you will want to talk directly with a reverse mortgage lender if you want an exact number. Here at Trinity Mutual, we are always happy to speak with you and outline the fees we charge. Speaking with a representative can be a great way to start to determine if a reverse mortgage will work for you and your unique situation. If you have already decided a reverse mortgage is right for you, apply now!