If you are considering a San Diego Mortgage Broker who can advise you on a Home Equity Conversion Mortgage (HECM), more commonly known as a reverse mortgage, then The Mortgage Planners are the right choice for you. We have 10 years experience in helping Senior’s in San Diego obtain reverse mortgages.
If you decide to go through the process you will be joining a large number of seniors in California converting home equity into needed cash. The San Diego HECM Reverse Mortgage lending limit is $625,500 and depending on your home value, age, and current interest rates you can access somewhere between 60%-75% of your home’s value up to the lending limit.
In order to qualify for this program, you must be
• at least 62 years of age
• own your home or be able to pay off your current mortgage with the reverse mortgage
• occupy the home
• not be delinquent on any federal debt like student loans
• participate in a consultation with a HUD-approved HECM counselor
A Reverse Mortgage is not right for every senior, so FHA requires applicants to discuss their eligibility with a HECM counselor. The HECM counselor will lay out the program’s requirements, the responsibilities that you will need to take on, and possible alternatives to San Diego Reverse Mortgages. Once you have completed the consultation you will then be allowed to make an informed, independent decision.
Reverse Mortgages have become an exceedingly popular way for San Diego seniors to acquire needed funds. According to the U.S. Department of Housing and Urban Development, between February 1, 2008 and January 31, 2011, there were 3,363 San Diego Reverse Mortgages originating from the San Diego HUD office. Throughout California, there have been 40,614 reverse mortgages issued during this period.
Benefits of a San Diego Reverse Mortgage
A San Diego Reverse Mortgage offers you the ability to convert the equity in your home into funds that can be used for a variety of uses. Many seniors use a reverse mortgage to pay off their first mortgage and remove the burden of monthly payments. You may also wish to use the money to pay for home repairs or property taxes. Another common use for reverse mortgages is to use the funds to pay for unexpected medical bills. There are no strings attached to use of these funds, so they can be used at your discretion.
Since the funds received from a San Diego HECM Reverse Mortgage do not need to be repaid until after you have moved out of your house or your estate is settled, they provide great peace of mind. With a reverse mortgage you continue to own your home and you can remain in your home until you decide to move out.
Finally, the costs that are usually associated with a mortgage, like origination fees, mortgage insurance and other closing costs are usually integrated into the loan principal, so you do not need to pay for these fees up front. These fees are usually just added to your loan’s balance.
San Diego Reverse Mortgages Should Be Carefully Considered
Before you apply for a San Diego Reverse Mortgage, you may wish to have a consultation with a reputable San Diego Mortgage Broker like The Mortgage Planners, who can provide you with all the details of how a reverse mortgage works, discuss lending terms, and help you take the first steps. They can also provide you with a list of HUD-approved HECM counselors in your area.
After you have had your counseling session with the HECM counselor, you can start the reverse mortgage process. If you decide not to work with The Mortgage Planners, we encourage you to find a San Diego Mortgage Broker that has the experience and expertise necessary to make your reverse mortgage process as simple and efficient as possible.
San Diego Reverse Mortgages Have a Wide Variety of Disbursement Options
The amount you can receive for your home is dependent on the value of your home and your age. The older you are, the more you will be able to borrow. The age of the youngest person in the household will determine the loan amount.
Interest rates on most fixed rate San Diego HECMs are currently between 4.5% – 5.5% depending on fees and credits, while those on monthly adjustable loans are in the 3% range. The funds you receive from San Diego HECM Reverse Mortgage can be provided in a single lump sum or in monthly payments to you. You may even have the funds remain a line of credit which provide monetary disbursements to you upon your request. Many lenders will allow a combination of these disbursement methods dependent on whether you choose the fixed rate or ARM option.
Care Should be Exercised When Considering a Reverse Mortgage
Although San Diego Reverse Mortgages are excellent options for seniors to convert their equity into cash, reverse mortgages should be carefully considered. You may find the loan details confusing which can be remedied by discussing the loan with San Diego Reverse Mortgage experts like us.
In some rare cases, your benefits from Social Security or Medicaid may be affected. When you consult with the HUD-sponsored HECM counselor you may wish to discuss how a reverse mortgage may affect any such benefits.
The knowledgeable and helpful staff at The Mortgage Planners is available to discuss any issues concerning San Diego Reverse Mortgages, as well as provide a free consultation to determine how much money will be available to you and answer any questions you may have. You may contact me at (619) 312-0612 or email me any questions you may have.