Reverse Mortgage in
Sonoma County, California
A reverse mortgage is a home equity loan for those over the age of 62 that does not require monthly payments. The loan is paid back upon the borrowers’ moving or passing away. Essentially, a reverse mortgage lets you convert some of the equity in your home into cash. Trinity Reverse Mortgage is a company that specializes in home loans for seniors (since 2004) and can help you weigh the pros and cons of taking out a reverse mortgage on your home.
What are the Types of a Reverse Mortgage?
Reverse mortgages come in three types, home equity conversion mortgage (HECM), HECM for purchase, and jumbo reverse mortgage. HECMs are insured by the FHA, jumbos are not.
- Home equity conversion mortgage – The most common reverse mortgage. Funds can be disbursed in a lump sum, in regular monthly payments, through a line of credit, or a combination of two or three of these options.
- HECM for purchase – Used to finance the purchase of a new home. Often used by people who want to downsize but don’t want to sink all the proceeds from the sale of the existing home into the new home.
- Jumbo reverse mortgage – HECMs are subject to the FHA’s upper lending limit of $679,650. Jumbos are designed for people with high-value homes who want to borrow more than the FHA’s limit. They work better for older borrowers, typically in their 70s, with homes valued at $1,200,000 and up than for less expensive homes and younger borrowers. Condos that are not approved for a HECM are welcomed and would qualify for a Jumbo reverse mortgage starting at $500,000 or greater.
How to Qualify for Reverse Mortgages in Sonoma County?
To qualify for a reverse mortgage in Sonoma County, you must meet the following criteria:
- You are at least 62 years old.
- You own your home and use it as your place of primary residence.
- The house can be a single family home, a multi-family home (up to 4), or an approved condominium.
- You must own the home free and clear or have sufficient equity for a reverse mortgage to pay off any existing mortgages and liens.
- Your home must be in good condition.
- You must pass financial assessment that makes sure you can pay for home maintenance, homeowners insurance, property tax, and any other applicable fees. If you have been late in the last 2 years on your mortgage payment, property taxes, hazard insurance or HOA dues, you may have to have a set aside for the future property taxes and insurance.
If you are interested in obtaining a reverse mortgage, you must meet with a HUD-approved counselor to determine if the product is suitable for your needs. The HUD-approved counselor can help you evaluate the pros and cons of a reverse mortgage and give you an in-depth look at the process.
What Are the Costs of a Reverse Mortgage?
A reverse mortgage isn’t just a simple loan that turns your home equity into cash. There are several costs that come with a reverse mortgage. Some of these costs are one-time fees, others are ongoing. You can start calculating the costs with our summary of costs and fees.
- Loan origination fee
- Servicing fee
- Closing costs
- Third-party services fee
- Upfront Mortgage Insurance Premium (MIP)
- Monthly Mortgage Insurance Premium (MIP)
Reverse Mortgage Rates You Can Expect in Sonoma County
Reverse Mortgage Alert maintains a table of average monthly reverse mortgage rates in California as a whole from Jan. 1, 2015 to two months ago. For a specific mortgage rate price quote, contact the experts at Trinity Mutual or apply now online.
Things to Consider When Choosing Your Reverse Mortgage Lender
You can get a reverse mortgage through several different channels, but it’s best to go stick with the experts when it comes to attaining a reverse mortgage. A reverse mortgage broker that specializes in finding home loans for seniors, like Trinity Mutual (Since 2004), will be able to help you find the best way to get a reverse mortgage at the best price for you.
Your home is an important asset for you and your family, so choose a lender who is an expert in the field and who lets you ask all the questions you need.