An overview of reverse mortgages and how Southern California seniors use them.
Senior citizens across Southern California are using Reverse Mortgages as a smart way to afford the high cost of living that is common to our region. Social security is not always enough to cover even common day to day expenses such as in home care, prescription drugs, uninsured medical bills, or home maintenance. In addition to helping out with these necessities, many Californians have found reverse mortgages to be a great way to finance the fun things in life as well. Many seniors are now using this payment-free home loan to take advantage of their home equity to enjoy a higher standard of living.
In obtaining a reverse mortgage, the longer the senior has owned their home, the better. Seniors in Southern California who have owned their home over 10 years have probably seen a large increase in their home equity as real estate values have increased. Even though home prices now appear to be declining, most long-term residents of Southern California still have ample home equity. And because the lender (or FHA) assumes the risk of further drops in value, once the reverse mortgage is obtained, further home price depreciation will not affect the loan or amount of money available. For this reason, now is a good time to apply for a reverse mortgage, before a further drop in home prices that disqualifies some seniors for a reverse mortgage.
Reverse mortgages in Southern California average in size around $150,000. Generally, the more equity they have, the more funds are available with a reverse mortgage. When the loan closes, they have the options of getting a line of credit to tap into at any time, taking the money out as lump sum to put in the bank, receiving an automatic month check or any combination of these options. They may even choose to repay the money at any time, increasing the amount available for the future in most cases. The Southern California senior’s reverse mortgage can be customized to meet their specific needs and goals, rather than being stuck with the inflexibility of a traditional mortgage.
Reverse Mortgages in San Diego, Los Angeles and San Francisco California
Reverse mortgages in California have been affected to varying degrees in different parts of the state. Declining home equity due to dropping real estate values has been the primary culprit for this development. But not all areas have been affected equally.
Reverse Mortgages with Fixed Rates
Reverse mortgages with fixed rates have become increasingly popular since the new HUD FHA program was introduced.
Reverse Mortgages California: Growing Steadily
The populartiy of reverse mortgages continues to grow and for good reason.
