now browsing by category
Reverse Mortgage, The New Retirement Plan
Reverse Mortgage Loan, still unknown to many, is a brilliant retirement method helping senior citizens across the country by eliminating their monthly mortgage payments and putting cash in their bank account.
Reverse Mortgages have been gaining a lot of attention. Reverse Mortgages eliminating your monthly mortgage payments, gives you additional retirement cash, and you are able to live in your home during your lifetime.
Seniors across the country are in financial stress with high mortgage payments and other expenses. Many are unable to work, while they are in need of extra retirement income. A Reverse Mortgage loan is often a great solution to eliminate your monthly mortgage payments while increasing their income.
What is a Reverse Mortgage and How Does it Work?
A reverse mortgage is essentially a loan. You are borrowing against your home equity. You can get a lump sum amount, line of credit or get monthly checks. However, unlike traditional mortgages, with a reverse mortgage you do not have to pay back the money you have borrowed as long as you are living in the home.
Reverse Mortgages are ideal for you if:
- You’d like to eliminate your monthly mortgage payment, or if you struggle with bills every month.
- You plan to stay in your home for the rest of your life.
- You could use the extra money that it provides you (tax free).
- You are 62 years or older and have 50% or more equity in your home.
There are many things to consider when exploring this retirement method. Here are a few:
- Interest:Since a reverse mortgage is a loan, it does accumulate interest. But there are no monthly payments due on a reverse mortgage. So the amount you will eventually have to pay back does grow larger over time, but the loan isn’t due until you decide to sell your home or when both you and your spouse have died. (To avoid foreclosure, borrowers must keep property taxes & insurance paid up and keep the property in good repair.) The loan repayment amount will never exceed the value of your home.
- Estate Value:Your estate value may lower over time. Something to take into consideration if you plan to leave your assets to children.
- Not Enough Cash Can Be Tapped:If you have a lot of home equity, you might be frustrated that a Reverse Mortgage only enables you to use some of it. The HECM loan rules will evaluate your equity using a maximum home value of $625,500, even if your home is worth more. However, your actual loan amount is determined by a calculation that uses the appraised value of your home, the amount of money you owe on the home, your age and current interest rates.
Find out if a Reverse Mortgage is right for you.
The best way to find out if a Reverse Mortgage is right for you is by contacting us. Our honest and professional Loan Officers will help you determine if a Reverse Mortgage is right for you at no charge or obligation.
Pacific Mortgage Consultants
(855) 562-6705 toll free
(866) 775-2377 fax
(916) 705-0993 Cell
513 Angela Street
Davis, CA 95618
CA Bureau of Real Estate LIC. # 01355716
PMC CA Bureau of Real Estate #01378482
PMC NMLS# 2131
Equal Housing Opportunity
In the state of California Homeowners can get a $7,000 reduction in the taxable value for a qualifying owner-occupied home. This results in an annual savings of about $70 a year every year, as long as you live in the home. The requirements are that you own the home, and you live there. Then you just have either fill out a form or contact your county Assessor. Some counties have the form on their website, and others want you to call, email, or go into their office. Here is a list of all the county assessors websites in California.
The form only takes a few minutes to fill out, and you save $70 a year. That adds up over a long period of time. $70 is $70, why wouldn’t you want to save money when its this easy? If you you have any questions feel free to contact us.
Be on the look out for our new email newsletter. It includes articles on home, finance, inspiration, and your property value, powered by Zillow. Unfortunately we had some technical difficulties with the first half of the emails we sent out, and the property values did not show up for those people. We got everything straightened out, and everyone will be getting their property value in the newsletter from now on.
We have also been sending out a one time email requesting reviews. We have had a great response. See what people have been saying about us, or to leave us a review.
Here is a copy of this months news letter
Thank you and have a great month!
Pacific Mortgage Consultants
Harry Ahlstrom, the home loan answer man, will be at the Yolo County Fair August 13th through the 18th. Its our home county so we are really excited to be there. He’ll be giving away free Taffy and answering questions.