Is a Reverse Mortgage Right for Me in Fresno?

Mortgage and Lending with Fresno/Clovis/Visalia/Madera and surrounding communities NMLS ID# 582935

Determining whether or not a reverse mortgage is right for you is the number one question on the minds of prospective borrowers and should be answered right up front.  The best way to get an accurate answer to that question is to be sure you are working with the right Reverse Mortgage Consultant in Fresno County.  You want to find someone who clearly has your best interest in mind and someone who will give you all of the information so you can make an informed decision.  Get answers to the  Top Ten Questions about Reverse Mortgages.

There are many ways to look at the equity in your home and I have found that depending on what generation I'm speaking with there are many different views.

Mortgage Burning My grandparents generation made a big production of paying off their mortgages and even had mortgage burning parties to celebrate the occasion.  Having a mortgage on their home at the end of 30 years was often considered to be a failure because their number one goal was to leave an inheritance for their children.  But in today's economy there is another benefit to owning your home free and clear because the more equity you have in your home, the more income you can pull back out of your home with a reverse mortgage.

The Baby Boomers have an entirely different outlook when it comes to home equity.  Many of them consider their homes to be a retirement asset and have planned to use the equity in their homes for retirement purposes through a reverse mortgage. 

Unfortunately for many older Americans, the plans they had for their "Golden Years" just didn't pan out.  Even though they carefully planned for their retirement they now find themselves living from Social Security check to Social Security check and often find out they have more "month" at the end of their "money".  Many of those individuals, while cash poor, are living in homes free and clear.

If you find yourself to be struggling to make ends meet or maybe you're just getting by and are unable to do the things you planned to do when you retired, then you may want to take a different view in how you see the equity in your home.

Consider looking at your home as a retirement fund that you have been paying into for many many years.  Now it's time for you to start utilizing those funds to live your life the way you planned.  With a reverse mortgage you can tap into a portion of your equity and you can begin utilizing that equity in several different ways.  You can receive a monthly income; you can leave the funds in a credit line and pull out what you need when you need it; you can receive a lump sum or a combination of the three. How much can I receive in Fresno County?

Yes the balance of your loan will grow over time and the equity in your home will shrink, but you will be utilizing that equity in the meantime without making any monthly payments and you will be living a more fulfilling life and sleeping better at night.

How will I know if a reverse mortgage is right for me?

You and your lender will need to determine the following:

  • What are your current needs and what do you hope to accomplish with a reverse mortgage?
  • What are your long term goals? 
  • Are you planning to stay in your home and for how long?
  • Is leaving the equity in your home as an inheritance for your children a top priority?
  • Are you unable to stay in your home without additional income?
  • Are you able to retire and do the things you planned to do without additional income?
  • Do you meet the age requirements:
  • Do you have sufficient equity in your home:

Should everyone who has equity in their home do a reverse mortgage?  No.  Many people don't need the extra income and a reverse mortgage doesn't make sense for them.  They have plenty of money available to them to live the life they want and there's no reason to tap into their home equity.  The other side of that coin is "YOU CAN'T TAKE IT WITH YOU" when you go so if you need the money to live a comfortable life then you should use it now.  If there's equity left for your children after repayment of the reverse mortgage then it will go to them but you need to make sure you are not living in poverty so your children can live in luxury and your children shouldn't want you to.

  There are many reasons people may want to do a reverse mortgage, a few of which are:

  • Extra Income
  • Paying off a current mortgage
  • In Home Health Care
  • Home Improvement
  • Travel
  • Helping Children and Grandchildren
  • Purchasing a new home
  • Purchasing a Vacation Home

The reasons range from necessities to luxuries and only you can decide what your needs may be.  Understanding Reverse Mortgages is the first step.




Posted by

Jeri Carmicheal, Reverse Mortgage Consultant, Serving Fresno, Madera, Visalia and surrounding communities.

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