Provided one is seeking a San Diego reverse mortgage, Equis Mortgage Group is the answer!
If one is seeking answers and information about the benefits of reverse mortgages, here’s what Equis had to say.
A homeowner who is 62 or older and has considerable home equity can borrow against the value of their home and receive the funds as a lump sum, fixed monthly payment, or line of credit.
Unlike a forward mortgage – the type used to buy a home – a reverse mortgage in San Diego does not require the homeowner to make any loan payments.
Instead, the entire loan balance becomes due and payable when the borrow dies, moves away permanently, or sells the home.
Federal regulations require lenders to structure the transaction so that the loan amount doesn’t exceed the home’s value and that the borrow or borrower’s estate won’t be held responsible for paying the difference if the loan balance does become larger than the home’s value.
One way that this could happen is through a drop in the home’s market value; another is if the borrow lives for a long time.
With the help of brokers like David LePari, who specialize in helping one get approved for San Diego reverse mortgages, it’s set up so that instead of the borrower making payments to the lender, the lender makes payments to the borrower.
The homeowner gets to choose how to receive payments and only pays interest on the proceeds received.
The interest is rolled into the loan balance so that the homeowner doesn’t pay anything upfront.
The homeowner also keeps the title to the home and over the loan’s life, the homeowner’s debt increases and home equity decreases. As with a forward mortgage, the home is the collateral for a reverse mortgage.
When the homeowner moves or dies, the proceeds from the home’s sale go to the lender to repay the reverse mortgage’s principal, interest, mortgage insurance, and fees.
Any sale proceeds beyond what was borrowed go to the homeowner (if still living) or the homeowner’s estate (if the homeowner has died). In some cases, the heirs may choose to pay off the mortgage so that they can keep the home.
The proceeds of a San Diego reverse mortgage are NOT taxable either.
While one might feel like it’s income to the homeowner, the Internal Revenue Service (IRS) considers the money to be a loan advance and the most common San Diego reverse mortgage is the home equity conversion mortgage or HECM.
The HECM represents the most common reverse mortgage in San Diego, that lenders offer on home values below $765k and is the type that one’s most likely to get, so that’s the type that gets discussed primarily at Equis Mortgage Group.
If one’s home is worth more, however, one can look into a jumbo reverse mortgage, also called a proprietary reverse mortgage.
One’s San Diego reverse mortgage might sound a lot like a standard home equity loan or HELOC.
However similar to one of these loans, a reverse mortgage in San Diego can provide a lump sum or a line of credit that one can access as needed, based on how much of one’s home has been paid off and one’s home’s market value.
Unlike a home equity loan or a HELOC, with a San Diego reverse mortgage, one does not need to have an income or good credit to qualify, and one will not make any loan payments while one occupies the home as its primary residence.
With a San Diego reverse mortgage, one can access home equity without selling the home, it’s designed for seniors who either don’t want the responsibility of making a monthly loan payment or can’t qualify for a home equity loan or refinance, because of limited cash flow or poor credit.
Put trust in Equis Mortgage Group, and their primary broker David LePari to help one navigate the process of applying for one and get approved today for a San Diego reverse mortgage!
Equis Mortgage Group NMLS #2009443 / DRE #01438695
David LePari, Broker NMLS #2027739
Company Name: Equis Mortgage Group, LLC
Contact Person: David Lepari
Email: Send Email
Phone: (619) 368-0941
Address:11440 WEST BERNARDO COURT, SUITE 300
City: San Diego
Country: United States