California is a beautiful place to live; the weather is nice, the views are beautiful and the home values can climb quite fast. This creates a unique opportunity for those with reverse mortgages (RM). Many homeowners in this FHA insured program are unaware that they qualify to pull out more money on their homes. As home values rise there is more equity to access. At the same time, as a RM holder gets older, they can access an even higher percentage of their equity with a new RM. Probably one of the greatest benefits of redoing a RM is that the cost is often much lower on the second RM than the first one. This is because any of the unused Initial Mortgage Insurance Premium (IMIP) is re-applied towards your RM refinance. For example, if your initial RM was on a home appraised at $400,000, you likely paid $8,000 in IMIP. If you were 70 when you got that 1st RM and now it is 2 years later, you would have over $7,400 in IMIP that can be applied towards the cost of your new RM.
I have several clients that have gone back and redone their RM’s. They can often qualify for $20,000.00 to $60,000 in additional money. Laura, from Los Angeles used her first RM to get a brand new kitchen with granite countertops and stainless steel appliances. She purchased maintenance free hardwood flooring and redid her entire kitchen and living room areas. She wakes up every day looking forward to cooking meals in her new kitchen. When her home value went up, she called me and got enough money to redo her bedrooms and bathrooms as well as have some cash on hand for a rainy day. She says of her RM, “If you ever need a little more help, you should look into a reverse mortgage. I live in my house, happy, and worry free.” Another client, Linda from Riverside has redone her RM three times. After her husband passed away, she redid her RM to have access to more money. She redid her RM again and had enough money to put some away and to put in a new front year and an extended driveway, so she no longer has to walk up 10 steps to get to her front door.
If you would like to see how much you can get by redoing your RM, all you need to do is call me with your current RM statement and in a few minutes we will have a good idea of how much more money you can have access to. It only takes a few minutes to find out, call today and see how much cash you have waiting for you to access.
Robert Snow Krepps, NMLS #255191, at HighTechLending Inc, call today to discuss how a reverse mortgage may be able to help you (877) 567 – 7476 or rkrepps@hightechlending.com .
HighTechLending Inc, NMLS # 7147, is an Equal Housing Lender. Licensed by the Department of Business Oversight under the California Residential Mortgage Lending Act.
