Reverse Mortgages Southern California

Reverse mortgages help senior citizens across Southern California afford the high cost of living that is common to our region. From uninsured medical bills, to prescription drugs, to home maintenance and even at home care, seniors are finding that it can be difficult to afford all the necessities on social security alone. Although for some Californians, reverse mortgages help pay for more than just the necessities. Many seniors are now using this payment-free home loan to take advantage of their home equity to enjoy a higher standard of living. For comprehensive reverse mortgage information, please see the links on the right.

Home Equity in Southern California

Typically, the longer the senior has owned their home, the better. Seniors in Southern California who have owned their home over 10 years have probably seen a large increase in their home equity as real estate values have increased. While prices now appear to be headed down, most long-term residents of Southern California still have a significant amount of home equity. And once the reverse mortgage is obtained, further home price depreciation will not affect the loan or amount of money available, as the lender (or FHA) assumes the risk of further drops in value. For this reason, the time to apply for a reverse mortgage is now, before home prices and the senior’s home equity decline to a level that disqualifies them for a reverse mortgage.

Reverse Mortgage Options

On average, a senior in Southern California can use a reverse mortgage to tap into over $150,000 of their home equity. Generally, the more equity they have, the more reverse mortgage funds are available. When the loan closes, they have the options of taking the money out as lump sum to put in the bank, getting a line of credit to tap into at any time, receiving an automatic month check or any combination of these options. The money can even be repaid at any time, increasing the amount available for the future in most cases. Rather than being stuck with the inflexibility of a traditional mortgage, the Southern California senior’s reverse mortgage can be customized to meet their specific needs and goals.