Consider a reverse mortgage for high value homes

One of the downsides for many of us that live in the Bay Area is that the Federal Housing Administration reverse mortgage only considers up to $679,650 of your home value when calculating your proceeds.

If your home value is significantly higher, there is a jumbo reverse mortgage that considers the full value of your home and can lend up to $4 million. There are a variety of fixed rates of interest and no mortgage insurance premiums. If you have a high valued home, this jumbo reverse mortgage could be a good option to access more of your home equity.

“If needed, it makes sense to consider your home equity as part of your retirement planning,” said David Chee, Certified Public Accountant.

A reverse mortgage is a loan that enables homeowners 62 or older to borrow against the equity in their home, without having to give up title, or take on a new monthly mortgage payment.

The money received can be used for any purpose. The loan amount depends on the borrower’s age, current interest rates and the value of the home.

The homeowner must remain current on property taxes and insurance. A reverse mortgage does not have to be repaid until the borrower sells or moves out of the home permanently, and the repayment amount cannot exceed the value of the home.

After the loan is repaid, any remaining equity is distributed to the borrower or the borrower’s estate.

For more information, call David Chee, CPA, NMLS ID#263222 at (800) 967-3575 at HighTechLending, Inc., Licensed by the Department of Business Oversight under the California Residential Mortgage Lending Act. NMLS #7147. 7777 Greenback Ln. #210 Citrus Heights, CA 95610. Equal Housing Lender. NMLS Consumer Access: www. nmlsconsumeraccess.org