Reverse Mortgage in
Ventura County, California
Reverse mortgages, or Home Equity Conversion Mortgages (HECMs), are a great option for many people. They allow you to access the equity you have built up in your home over a lifetime of making payments, without having to give up your home or your right to live there. For those who are looking for some extra passive income, or to get some help with unexpected expenses such as medical bills, a reverse mortgage is a great way to do so.
However, reverse mortgages are also a source of a great deal of controversy. They are less common than standard mortgages, and this can create a level of fear and misunderstanding. There are many opinions and a lot of debate. With so many voices contending about what is right, we want to help you figure out the facts, so you can know if a reverse mortgage is a good fit for you. We recommend what we think is the best fit for your set of circumstances. This may include: 1. A reverse mortgage is not right for you at this time or ever. 2. Sell your home and purchase with a HECM for purchase. 3. You should first do a HECM and then in the future possibly consider a Jumbo. 4. Consult with your children or professional advisors and let us know if we can help answer any questions they may have.
Is a Reverse Mortgage in Ventura County Right for Me?
First things first, reverse mortgages are only available to those over the age of 62. You must also be a homeowner with sufficient equity to pay off existing mortgages and liens in order to qualify for a reverse mortgage. If you meet these qualifications, then a reverse mortgage might be right for you depending on what you are looking for.
There are pros and cons to a reverse mortgage. One advantage is that it is one of the few ways you can access the equity you have built up over time in a home. If you would rather have that equity as cash that you can use for other expenses, then a reverse mortgage is a great option. Another advantage is that HECMs are FHA-insured to ensure that you won’t have to repay more than the value of your home—no underwater mortgages.
Just like any other loan, a reverse mortgage has interest and costs associated with it, so it works better as a long-term loan than something that lasts less than about 5 years. If you are nearing a point where you would prefer to move out of your home, then it is usually better to sell your home than to get a reverse mortgage on it. However, if you want to buy a new home and preserve assets from the sale of your existing home, a reverse mortgage for purchase can be a great way to finance part of the cost of the new home.
One drawback of HECM reverse mortgages in areas with high property values is the FHA’s upper lending limit of $679,650. If you have a high-value home, worth more than about $1.2 million, a jumbo reverse mortgage will allow you to borrow more than the FHA’s upper lending limit. One thing that HECM’s and Jumbo’s have in common is the protection of the loan balance exceeding the value of the home. They call this protection a “Non-Recourse” loan. HECM’s charge an upfront and ongoing MIP (Mortgage Insurance Premium) Jumbo’s do not loan 75% Loan to Value the way HECM’s do, so the Jumbo’s do not charge anything for this protection.
What Are Reverse Mortgage Rates in Ventura County, California?
Reverse Mortgage Alert maintains a table of average monthly reverse mortgage rates for California as a state from Jan. 1, 2015 to two months ago. Rates in your area may differ. There are additional fees and costs, some of which will vary depending on your circumstances. Our summary of costs and fees of a reverse mortgage can act as a reverse mortgage calculator to help you figure out what the total cost will be. Of course, if you would like a detailed breakdown of how much money you can expect from a reverse mortgage and what the exact costs will be, you can always contact us here at Trinity Reverse Mortgage and we will be happy to assist you.
If you think a reverse mortgage might be right for you and your circumstances, apply now!