Reverse mortgages are a great way for seniors to live more comfortably during retirement. Not only do they eliminate current mortgage payments, they put money back into your pocket by paying you monthly or periodic payments pulled from the equity in your home. However, reverse mortgages are confusing and more complicated than standard mortgages. It’s vital for you to learn all you can and shop around before making any major decision regarding reverse mortgages in Newport Beach.
Finding a Lender
As there dozens of reverse-mortgage lenders in Newport Beach, the task of finding the right lender is daunting to say the least. You must take into account all of the following factors when choosing a lender:
- All lenders are not created equally, and you may get more money from one lender versus another. You may also have to pay more or less fees depending on the lender you choose.
- The amount of money you get has little to do with the amount of fees you pay. You may find that you get less money with more costly programs or more money with costly programs. For some, paying little more may be worth the extra cash in their pocket every month. For others, long-term costs are more important.
- Take into account all costs including initial costs, repayment costs and interest rates. While you may not have to pay back the loan in your lifetime, your children may opt to pay it off to keep their childhood home. Always consider final and total costs with any reverse-mortgage program.
- Ask every lender about all the plans they offer. Most lenders usually “feature” one or more popular plans, but there are often more plans they don’t tell you about.
In Newport Beach, many reverse-mortgage lenders have a loan calculator on their site or a link to one. Loan calculators estimate how much you are likely to receive with a reverse mortgage by taking into account all of your personal circumstances such as your age, value of your home, amount owed on home and your preferred payment option. Play around with it to learn how much you can receive now at varying rates and how much you will receive if you wait a few years. However, rates may rise if you wait, and it’s impossible to know what interest rates will be in the future.
Shopping around for a lender in Newport Beach takes time, dedication and patience. The shear amount of options available necessitates proper research, planning and selection to insure that you get the best deal possible. With so many options available, you need to select the right one, and that takes research.