Here's an Upland Reverse Mortgage Story.
I'm so excited to be helping a wonderful lady in Upland right now. She’s lived in her home just 22 blocks from the Euclid Avenue "Ye Bridle Path" for over 25 years. In 2003 her and her husband refinanced their home. Then just a few years later her husband passed away. Not only did she lose him, but she lost his income adding to the devastation. She found it very difficult to keep up with expenses. Suffering with a chronic disease she was unable to continue working adding additional pressure to her budget. A family member who is a knowledgeable real estate broker advised her to look into a reverse mortgage and gave her my number.
Luckily for her the home values in Upland have appreciated quite a bit since she bought in the 80’s and her current loan balance was low enough that the reverse mortgage proceeds were enough to not only payoff that mortgage and eliminate her house payments, but also provide for a line of credit of $85,000! Because of the new rules in place she will only be allowed to access $20,000 of that line of credit for the first 12 months, but after the first year then entire line of credit will be available to her. She is very excited about the growth feature on the line of credit (my favorite reverse mortgage feature!). On an adjustable rate reverse mortgage the line of credit grows over time at a rate equal to the interest rate on the loan plus 1.25%. This means that if she is careful with her line of credit and only uses it for emergencies it will last much longer. Another great feature of this line of credit is that it cannot be revoked or reduced just because home value declined. Try that with a standard Home Equity Line of Credit!
It really makes me feel good to know that not only will this client no longer have to make a mortgage payment of $850.00 per month, she will have $85,000 in guaranteed and available credit for emergencies.
Did I mention that I love what I do?
By Deborah Nance
Your Local Southern California Reverse Mortgage Professional
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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.