Selling Your California Home with A Reverse Mortgage

There are a few extra things to consider if you want to sell your home and you currently have a reverse mortgage. Just like with any mortgage loan, when you sell your house your reverse mortgage will need to be repaid, including any accrued interest and any applicable fees owed.

A home valuation is always smart but with a reverse mortgage, you will want to get a current home appraisal to best determine the home’s value. This is essential for helping you understand how much of the estimated sale proceeds will need to be used to pay off your Reverse Mortgage and how much you can expect to keep.

Once you’ve determined the current value of your home, it’s time to list it on the market. Once your sale is in process you will want to communicate with your reverse mortgage lender. Let them know your home is under contract and find out the best way to help ensure the process goes smoothly and your loan is paid off in a timely matter after the sale closes.

If your home’s sales price is less than what you owe for your reverse mortgage you will need to look to your loan FHA insurance to cover the extra funds needed to repay your loan.

If you are selling a home with a reverse mortgage and the borrower has passed away you will need to work closely with the Reverse Mortgage lender to coordinate the home sale and loan repayment. It’s important for home sellers to consult with a financial advisor or real estate professional experienced in handling reverse mortgage to fully understand any intricacies involved with selling a home with an active reverse mortgage.

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How Does a Reverse Mortgage Loan Work?

In California where living costs are high many of our mortgage clients over the past few years have reached out to us about whether a reverse mortgage could be a good choice for their needs. A reverse mortgage is a home loan specifically designed for homeowners who are aged 62 or older who have a lot of equity in their home.

Unlike a traditional mortgage where the homeowner makes monthly payments to a lender, a reverse mortgage allows homeowners to convert part of their home equity into cash without selling the property. With a reverse mortgage homeowners can receive the proceeds from their loan as a lump sum, monthly payments, or a line of credit.

One of the most appealing features of reverse mortgages for seniors is that they do not require monthly mortgage payments. Instead, the loan balance accumulates over time, typically with interest. Borrowers are still responsible for property taxes, homeowners insurance, and maintenance of the home. A reverse mortgage loan is repaid when the homeowner sells the home, moves out of the home, or passes away. When one of those events occurs, the proceeds from the home sale are used to repay the reverse mortgage, and any remaining equity goes to the homeowner or their heirs.

There are many advantages to these types of loans but it’s important to remember reverse mortgages can provide additional income for seniors, they come with their own risks and considerations. Interest accrues on the loan balance, which can reduce the equity in the home over time. Before considering a reverse mortgage, homeowners are advised to thoroughly understand the terms and explore all the alternatives for their situation.

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Understanding What Makes a Home “Smart”

Smart Homes are becoming more common and are clearly a trend that will continue in the California housing market. Smart Homes are homes equipped with advanced technology that can automate and enhance daily living. These homes are interconnected with tech devices that allow the homeowners to control and monitor them remotely.

Below are a few features that can be found in Smart Homes in California:

  • Home Automation that allows technology to automate some tasks. Examples include controlling lighting, thermostats, security systems and household appliances.
  • Voice Control which allows users to command and manage smart home systems through voice-activated platforms like Alexa, Google Assistant, Siri and others.
  • Security and Surveillance systems that offer a comprehensive approach to keeping your home and family safe. With these systems alerts and notifications can provide real-time updates on potential security threats.
  • Energy Efficiency is a high priority for Californians! Smart Home technologies help users monitor and adjust energy usage which can result in reduced energy consumption and a highly desirable lower utility bill.

As you can see there are many benefits to Smart Home technology including energy savings, improved security, remote access and personalization. As home technology continues to progess we can expect more sophisticated products that offer even more benefits to California homes.

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A Look at The Latest Kitchen Trends

Kitchens are the heart of every home! This area is becoming a space where design meets functionality. Statement kitchens are at the top of homeowners wish lists in 2024. A fresh wave of new trends is elevating kitchens into aesthetic marvels. Below are some of the latest Statement Kitchen Trends in California.

Bold Color Palettes: After several years of neutral tones dominating kitchen spaces, bold colors are making a comeback. From rich blues and greens to deep reds, homeowners are embracing the opportunity express themselves through visually stunning kitchens.

Mixed Textures: The latest kitchens are moving away from uniformity and embracing the diversity of materials and textures available today for remodeling projects. Textures like wood, stone, metal and glass are being incorporated into new designs to add depth and uniqueness to kitchen spaces.

Open Shelving & Display Storage: Closed cabinets are going away and being replaced by open shelving and open storage solutions that display stylish dishes, cookbooks and decorative pieces. The goal is to achieve personalization and a cozy feel.

Smart Technology Integration: Smart technology is everywhere in 2024, including the kitchen. New kitchens feature smart appliances, touchless faucets and voice-activated controls.

Integrated Dining Spaces: Traditional dining rooms are making way for dining spaces within the kitchen. These spaces offer ample seating with spaces islands or breakfast nooks. This trend is promoting a sense of togetherness and community.

No matter what options you love and want in a new kitchen, the latest trends offer the opportunity to express yourself! Whether you want vibrant colors, mixed textures or the latest technology, the key to an updated modern look is to make sure in enhances the overall aesthetic of your home.

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Why You Don’t Have to Use the Home Builder’s Lender

Embarking on the journey of building a new home in California is an exciting opportunity that often involves making multiple decisions. One of the choices homeowners may encounter is whether to use the lender recommended by the home builder or to explore alternative financing options. Contrary to popular belief, you are not obligated to use the home builder’s lender, and there are several compelling reasons to consider other financial avenues.

While the home builder may have a partnership with a preferred lender, it doesn’t guarantee the most competitive interest rates. Shopping around and exploring different lenders allows you to compare rates and terms, potentially saving you thousands of dollars over the life of your loan.

Different lenders offer a variety of loan programs with various terms and conditions. By casting a wider net and researching multiple lenders, you can find a loan option that best suits your financial situation, whether it’s a fixed-rate mortgage, adjustable-rate mortgage, or other financing alternatives.

Independent mortgage brokers in California often provide more personalized service than larger institutions. Working with a lender who takes the time to understand your unique financial needs and goals can lead to a smoother and more tailored home financing experience.

Some builders may offer incentives or discounts if you choose their preferred lender. However, it’s essential to weigh these benefits against the potential for higher closing costs or fees associated with the loan. Exploring different lenders allows you to find the most cost-effective option for your specific circumstances.

Choosing your own lender gives you the flexibility to negotiate terms, especially if you have a strong credit history. This negotiation power may lead to more favorable loan terms, including lower interest rates, reduced fees, or better overall financing conditions.

Some builders may employ high-pressure tactics to encourage California buyers to use their preferred lender. Choosing an independent lender allows you to make decisions at your own pace, without feeling rushed or coerced into a financial arrangement that may not be in your best interest.

While builders often have partnerships with preferred lenders, it’s essential for California homebuyers to recognize that they have the freedom to choose the financing option that best aligns with their needs. By shopping around, comparing offers, you can confidently navigate the homebuilding process with greater financial control and potentially enjoy more favorable loan terms.

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