Posts Tagged ‘reverse mortgage San Diego’

PostHeaderIcon Reverse Mortgage San Diego CA

Reverse mortgage San Diego lenders lend money to those people who are 62 years old or older, and are in need of a loan. This loan allows home owners to convert part of their home equity; one has an opportunity to draw the mortgage principle in large quantity by receiving payments monthly over a specified period of time. This can either be a revolving credit line or combination.
Before one take the home loan, it is advisable to speak to San Diego home loan expert and learn on the terms and conditions of the loan. Reversed mortgage vary in term of the lender and then percentage interest. For this reason, one is advice to understand fully what it entails before getting one and learning the hard way. When home owners understand the details, fully then it would be easy to identify the type of reverse mortgage that they would be able to handle.
Single purpose reverse mortgage, this type of mortgage is not expensive, but it has its own limitation. The loan can only be used for a specific purpose that can either be specified by the government or the loan specialist. If one says that the loan is for clearing taxes or making house repairs, then that is what the loan would be used to do. This type of loan best fits those with moderate or low income.
The other form of loan is Federally Insured reversed loan also known as the Home equity Conversation loan (HECMs), this loan are more costly since the upfront cost is high. For those planning to stay in their house for a short while, it would be recommendable to borrow small loans. These types of loans are readily available and do not restrict those who borrow the loan.
The last form of reverse mortgage San Diego can offer is the property reversed mortgage, this is the type of loan that are given to home owners by the private companies. In some instances, the loans are usually backed by some companies that develop them. This type of loan is costly and available to those types of people that have a high level of income. There are no restrictions as to how and when the money would be spent.
There are important factors to consider, when it comes to the much one would be able to borrow from Reverse mortgage San Diego lender. Some of the factors that are the key include the age of the home owner, the interest rate at which one is borrowing with, value of the home in question and also the location of the property. The borrower is given an option to either collect their cash as a lump sum or receive small quantities each month.
There is a limitation that are set when it comes to reverse mortgage San Diego, firstly one is not permitted to fully relies equity of their property, there is a certain percentage that is given to the lenders so as to ensure they do not obtain the right to one’s home. Evidently the price of the loan would be less than the value of the property.

The advantage of this form of reverse mortgage San Diego loan is that it does not affect the medical benefit that the senior may be getting or even social security. Even if, one has a loan life continues as usual, the aim of the loan is to assist the elderly, but not to frustrate and strain them.

Reverse mortgage San Diego lenders tend to offer attractive services for instance home improvement and then claim that reverse mortgage is the best option, one should not just hoe into money borrowing without shopping around and ensuring that the option they go with is the best one in the market. There are several places where one can borrow reverse loan is San Diego thus giving one an opportunity to find the best. There are those that might end up pressurizing one to purchase other financial product, like the insurance.
It does not matter how far one goes with the application, there is always an opportunity to cancel the loan in case one changes the mind. One has at least three business days to do that to cancel the request without being penalized. After one cancelled, the loan officer has up to 20 days to refund any cash that one might have paid. Thank you for visiting our post reverse mortgage San Diego

PostHeaderIcon Reverse Mortgage San Diego

Reverse Mortgage San Diego

There are many times in one’s life where a cash shortage can cause a lot of problems. Homeowners over the age of 62 are certainly not immune to this situation, but the one thing that most do not realize is that they have more options than someone of a younger age. Reverse mortgage San Diego experts can help those who qualify to get through the leaner times and start enjoying life as they should. There are many reverse mortgage San Diego lenders standing by to help you make some positive changes in your financial situation.

The first step the reverse mortgage San Diego professionals will take is examining your current situation. While you do not need to own your home outright, your home does need in a condition that would deem it as lendable to reverse mortgage San Diego lenders. If your home was in need of a lot of repair, it may not qualify under the terms of the reverse mortgage San Diego lender. The reverse mortgage San Diego experts may advise you to make a few repairs before continue processing the loan.

The reverse mortgage San Diego lenders will offer this type of loan on many different types of homes. However, the home must be your primary residence. For example, if you currently own a multi-unit building, you could still qualify, according to the reverse mortgage San Diego experts, by simply making one of the units your permanent or primary residence.

When applying for a traditional mortgage, your credit will be scrutinized. This is not something that the reverse mortgage San Diego lender will do. According to reverse mortgage San Diego consultants, your credit history will generally have no impact on the decision of whether or not you are approved for this reverse mortgage. San Diego residents who have a less than perfect credit rating will still be able to qualify for this type of assistance from a reverse mortgage San Diego loan officer.

Your income will also not play a factor in whether or not you are approved for a reverse mortgage. San Diego lenders understand the reason behind this type of loan service is to allow those who have reached their later years to be able to live comfortably. Income will never play a factor in approval by the reverse mortgage San Diego professionals.

Reverse mortgage San Diego experts also state that if you have an existing mortgage on the property, back taxes, or any other types of liens on the property, you can use the proceeds from the reverse mortgage to pay them.

The reverse mortgage San Diego lenders all find that recipients are thrilled to find out that their benefits can be paid out in different options. One individual may choose to have one lump sum of cash, while another prefers to have monthly payments sent to them. How you choose to receive the money will depend on your current financial situation.

The amount received by each individual approved for this type of mortgage will be different. Reverse mortgage San Diego lenders base this amount on the age of the homeowner, the current interest rate, and the value of the home. An appraisal of the home must be completed before the lender will give you a number.

Your age plays a factor in the decision making process because the term of the loan does not expire. You could be approved for the loan at the age of 65 and, if you are still alive at age 95, you could still be receiving payments. All reverse mortgage San Diego experts will agree that this is one of the reasons that the option is becoming more and more popular among residents in the area. The fact that you could be receiving extra cash each month for the rest of your life definitely makes it a hard offer from the reverse mortgage San Diego lender to turn down.

Reverse mortgage San Diego lenders do want to warn everyone, though, that the benefit of payments received is not to be transferred. Should the recipient of the reverse mortgage San Diego loan be deceased, the balance on the mortgage will become due. This is also the case if the owner chooses to sell the property on their own or they no longer use the home as their primary residence.

While the main difference between a traditional home loan and the reverse mortgage is that you do not have to make payments, the traditional home loan often combines many of the expenses that go along with homeownership. Reverse mortgage San Diego experts should advise you that you will be responsible for paying your real estate taxes and insurance on the property. If your current mortgage includes these things in your monthly payments, it is certainly a factor to consider.

Reverse mortgage San Diego lenders understand just how difficult it can be to make ends meet. The reverse mortgage San Diego consultants agree that this type of loan could be just what a homeowner needs to improve their quality of life. Instead of working past the age of retirement to try to make ends meet, consider how the reverse mortgage San Diego experts could change your life. Reverse mortgage San Diego are ready and willing to help you out of your current financial situation.

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Reverse Mortgage

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Obtaining a Reverse mortgage is increasing in popularity with individuals 62 years of age or older can use to turn the equity in their home into cash. It is very important for an individual to understand a reverse mortgage, their ramifications, and the alternatives. Our site will provide an overview of how to obtain a reverse mortgage. The only reverse mortgage insured by the U.S. Federal Government is called a Home Equity Conversion Mortgage or HECM, and is only available through an FHA approved lender.

The Home Equity Conversion Mortgage (HECM) is FHA’s reverse mortgage program which enables you to withdraw some of the equity in your home. You choose how you want to withdraw your funds, whether in a fixed monthly amount or a line of credit or a combination of both.
You can also use a HECM reverse mortgage to purchase a primary residence if you are able to use cash on hand to pay the difference between the HECM reverse mortgage proceeds and the sales price plus closing costs for the property you are purchasing.

Reverse Mortgage

HECM Reverse Mortgage

HECM reverse mortgage counselors will discuss program eligibility requirements, financial implications and alternatives to obtaining a HECM reverse mortgage. They will also discuss provisions for the reverse mortgage

With a traditional second mortgage, or a home equity line of credit, you are required to make monthly mortgage payments. The reverse mortgage is different in that it pays you, and is available regardless of your current income. The amount you can borrow depends on your age, the current interest rate, and the appraised value of your home, sales price or FHA’s mortgage limits, whichever is less. The more valuable your home is, and the older you are, the lower the interest, the more you may borrow.

Reverse Mortgage

HECM Reverse Mortgage

With a HECM reverse mortgage, you don’t make monthly principal and interest payments, the lender pays you according to the payment plan you select. Like all homeowners, you still are required to pay your real estate taxes, insurance. With an FHA HECM you cannot be foreclosed or forced to vacate your house.

With a regular home loan you pay a monthly amount (principal and interest). With each month, the amount that you owe goes down and the equity in your home goes up. With a reverse mortgage you can receive money from the equity from your home. You do not have to make monthly payments. The cash may be paid to you in one or more of the following ways:

  • As a single lump sum payment
  • As a regular monthly amount (a cash advance)
  • As a credit line account that you draw upon as needed

A reverse mortgage should not be confused with a home equity loan or home equity line, both of which are other ways of obtaining money for the equity in your home. With either of these loan options, an individual must pay at least monthly interest on the loan amount received, or amount that they have drawn on their equity line.

Reverse Mortgage

Unlike ordinary home equity loans, a FHA reverse mortgage HECM does not require repayment as long as the home is your principal residence and the obligations of the mortgage are met. Lenders recover their principal, plus interest, when the home is sold. The remaining value of the home goes to you or your heirs. With a reverse mortgage the “lender” does not get to “keep” your home.

If the sales proceeds are insufficient to pay the amount owed, FHA will pay the lender the amount of the shortfall. FHA collects an insurance premium from all borrowers to provide this coverage.

HECM borrowers can choose an adjustable interest rate or a fixed rate. If you choose an adjustable interest rate, you may choose to have the interest rate adjust monthly or annually. Lenders may not adjust annually adjusted HECMs by more than 2 percentage points per year and not by more than 5 total percentage points over the life of the loan. FHA does not require interest rate caps on monthly adjusted HECMs.

The HECM product is insured by HUD and the FHA. This product represents over 90% of all reverse mortgages. HECM loan limits vary by community and are set by the FHA.  There are also Reverse mortgages offered by state and local governments (often called “single purpose reverse mortgages”). These are typically the least expensive reverse mortgages. These may have the most restrictions on how the money received can be used.

Reverse Mortgage

Counseling is required in order to obtain certain types of reverse mortgages. Counseling is required before an individual can obtain a Federally-insured Home Equity Conversion Mortgages (HECMs). Even if counseling is not required for a particular reverse mortgage, individuals thinking of getting a reverse mortgage should seek either counseling or the advice of a qualified financial adviser.

When you sell your home, you or your estate will repay the cash you received from the reverse mortgage plus interest and other fees, to the lender. The remaining equity in your home, if any, belongs to you or to your heirs.

Call us to go over your options on a reverse mortgage. We have experienced agents ready to answer all your questions. With offices to handle your reverse mortgage in San Diego and Los Angeles and Riverside we can handle your reverse mortgage needs.Thank you for visiting our site about obtaining a Reverse Mortgage.

Reverse Mortgage