Reverse Mortgages in San Clemente

Reverse Mortgage Services

Reverse Mortgage San Clemente

These days, being a retiree is not one big vacation as one might imagine it to be. Sure, you might have already prepared for this and have saved a substantial amount of money to be comfortable. You might have also made headway in your mortgage and your equity is well on its way to completion.

 

But here lies the problem: you might not have anticipated the rising costs of living in today’s current economy.

 

And so, with basic necessities costing more than you have expected, money has once again become a daunting subject.

 

Cutting down on your daily expenses can help, sure. But if you want to secure your financial security further, a reverse mortgage might be the answer.

What is a Reverse Mortgage?

A reverse mortgage is a loan program that is offered exclusively to homeowners who are 62 years old and above. It is a way for them to convert a part of their current equity into money.

 

With one, you as a homeowner will have the option to withdraw cash — a part of your equity — as a loan. You can choose to pay this back only when you have to transfer to another home.

 

Understandably, you might hesitate to borrow money for a house that can potentially cause you to lose a house that you have worked so hard for over the years. We will explain the benefits of a reverse mortgage in the next section — keep on reading.

The benefits of a reverse mortgage Orange County

Using the money from a reverse mortgage is entirely up to you. You can use it as padding for the next few months to stay more comfortable in your retirement, or you can use it to invest in other things. Whatever the case may be, there are certain benefits to be had in applying for one:

 

  1. Consolidate your debts
    If at this point, you still have multiple loans from different lenders to worry about, you can use your reverse mortgage to pay them off. This way, you can consolidate the stream of your monthly expenses in paying off debts.
  2. Stay in your home
    One of the great things about applying for a reverse mortgage is that you don’t have to move — it’s as simple as that. Other loan programs may require you to completely surrender your current way of living, but this type of loan does not.
  3. No payment of taxes required
    The IRS tags money from a reverse mortgage as “loan proceeds.” This means that it will be exempt from taxes until you are able to pay it off.
  4. Your heirs will have the option to settle the loan themselves
    Understandably, one of your major reservations as a homeowner might be because of your heirs. You’d want them to inherit the house that you’ve worked so hard for. This doesn’t have to be the case when you apply for a reverse mortgage. What happens to your property will be up to your heirs down the road. They will be given the choice to decide on how they will want to deal with the loan. They can choose to eventually surrender the house to pay off the mortgage, keep the house and apply for refinancing, or surrender the title altogether.

Reverse mortgages Southern California you can apply for

Typically, you can choose from 3 types of reverse mortgage: home equity conversion mortgage, single-purpose reverse mortgage, and propriety reverse mortgage.

 

Home equity conversion mortgage

Although more expensive than most conventional mortgage loans, the benefit to this is that it is insured by the US Department of Housing and Urban Development. It does not require rigorous medical examinations nor does it take into acount your income.

 

Single-purpose reverse mortgage

This type is the most affordable option out of all reverse mortgages. Although quite limiting, it does not accrue as much in fees and interests over time.

 

Propriety reverse mortgage

This applies to properties with higher value. Because of the higher stakes, you typically require the services of a counselor to help you navigate this type of reverse mortgage.

Applying for reverse mortgage with Golden Coast Loans

Whether to avoid foreclosure, pay for home upgrades, or for paying off other bills and responsibilities, applying for reverse mortgage might just be the right step for you. Of course, as with any other loan, you will need to meet a certain set of criteria to qualify for this. If you’re not sure about the requirements and if this is the right step for you, feel free to give us a call.

 

Golden Coast Loans is one of the foremost FDA-approved lending companies in San Clemente. Our consultants are here to help you determine how you can best take advantage of this special loan. Apply online and be rest assured that you will be in good hands with Golden Coast Loans.

If you’re interested in a Reverse Mortgage in San Clemente. Get pre-qualified below.