Be smart about the decision to get a Los Feliz reverse mortgage.
It's important to evaluate whether staying in your home is a viable option, even with a reverse mortgage - there are costs to home-ownership that the borrower must continue bear, even after the reverse mortgage closes.
- Property Taxes
- Home Insurance
- Maintenance
- Homeowners Association Dues when applicable.
What are these amounts annually? Figure that out and divide by twelve, then set up a special account that you deposit into every month so when these bills come due you have the money to pay them.
Typical Example in Los Feliz
- $3,566,00 Annual Property taxes (don't forget property taxes can go up 2% per year AND special assessments may be added with a ballot initiative for schools and infrastructure even if you've lived in your Los Feliz home for 45 years.)
- $1,150.00 Homeowners Insurance
- $3,600 for maintenance and lawn upkeep.
- $0.00 HOA Dues
$8,316.00 divided by 12 = $693.00 Monthly Budget for the "obligations" on a reverse mortgage in this scenario. Granted, this may be very doable for you, especially if you are eliminating a current mortgage, but remember to include it in your budget post closing on your reverse.
If you cannot comfortably afford these costs even with the help of a reverse mortgage you may just be postponing the inevitable.
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