Can You Afford A Reverse Mortgage in Los Feliz?

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Mortgage and Lending with Orange County, Corona, Riverside, Los Angeles NMLS#203003

Be smart about the decision to get a Los Feliz reverse mortgage.Loz Feliz

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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By Deborah Nance

NMLS#202003

Your Local Southern California Reverse Mortgage Professional

How Much Do You Qualify For?

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Equal Housing Lender

iReverse Home Loans, LLC, NMLS#810502 originates reverse mortgages in Alabama, Alaska, Arizona (MB-0919584), California, Colorado, Connecticut, Florida, Illinois, Indiana, Iowa, Kansas, Louisiana, Maryland, Massachusetts, Minnesota, Mississippi, Missouri, Nevada, New Jersey, New Mexico, Ohio, Oregon (ML-5378), Pennsylvania, South Dakota, Tennessee, Texas, Utah, Vermont (1164-MB), Virginia, Washington and Wisconsin. 

Important Information: Reverse Mortgages are neither "endorsed" nor "approved" by the Federal Government. The FHA (Federal Housing Administration) provides certain insurance benefits for lenders and borrowers in connection with the lender’s HECM loans; the FHA does not make or originate loans. The owner(s) retain title to the property that is the subject of the reverse mortgage until the person sells or transfers the property and is therefore responsible for paying property taxes, insurance, maintenance and related taxes. Failing to pay these amounts or failure to maintain the condition of your property may cause the reverse mortgage loan to become due immediately. A reverse mortgage is a complex loan secured by your home. Whether such mortgage makes sense for you depends on your financial situation and needs. For these reasons, we strongly recommend that you consult with a qualified independent housing counselor, family members and other trusted advisers before making this decision. This website is not from HUD or FHA and was not approved by HUD or any government agency.

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Deborah Nance

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