Are you about to retire from work, and you’re putting things in place to have a lovely retirement? Then, going for a reverse mortgage in Seattle is an option you might want to opt for. You’re qualified to get a reverse mortgage if you are over 62 years, and you own a home with adequate home equity. As a homeowner, a reverse mortgage allows you to borrow equity. Rather than paying the lender, the lender makes payment to the borrower.
How does reverse mortgage work in Seattle WA?
With a reverse mortgage, you’re not required to make any monthly mortgage payments as long as you still stay in the house, and you continue to meet your usual obligations. These obligations include payment of your property taxes, maintaining your property, plus homeowners’ insurance.
Seattle Reverse Mortgage Payments
Reverse Mortgage payments can be made either as a lump sum, Periodic advances through a line of credit, as a monthly payment as long as the borrower still resides in the home, or as a combination of any of them. Now comes the question, what precisely do you stand to gain by taking a reverse mortgage?
Geographic info for Seattle, WA
On the American West Coast, the seaport city of Seattle. King County, Washington, has it as its county seat. It will have 737,015 residents in 2020, making it the biggest city in both Washington state and the Pacific Northwest region of North America. With a population of 4.02 million, the Seattle metropolitan area is the fifteenth-largest in the nation. Its growth rate of 21.1% between 2010 and 2020 places it among the main cities with the fastest growth rates in the country.
Seattle is located on an isthmus between Lake Washington and Puget Sound, an inlet of the Pacific Ocean. At around 100 miles (160 km) south of the Canadian border, it is the most northern large city in the United States. As of 2021, Seattle, a significant entry point for trade with East Asia, was the fourth-largest port in North America in terms of container handling.
Since the end of the last glacial period (about 8,000 B.C.–10,000 years ago), for at least 4,000 years, people have lived in what is now Seattle. Around 13 villages inside the current Seattle city limits were home to the Coast Salish peoples of what are now known as the Duwamish Tribe and Suquamish, as well as other related groups and tribes. Within the current municipal borders of Seattle, there is proof of continuous human occupancy at a town site dating back to the sixth century C.E. exists at the Port of Seattle Terminal 107 site, which is situated on the Duwamish River’s western bank. Around 1800, the location was abandoned for unidentified reasons. Other noteworthy village locations include Chief Seattle’s birthplace, which was close to the King Street Station’s present location.
During his 1791–1795 exploration of the Pacific Northwest, George Vancouver made the first European visit to the Seattle region in May 1792.
The Denny Party scouts’ arrival on September 25, 1851, is typically used to determine the founding date of Seattle. In September 27, 1851, Luther Collins, Henry Van Asselt, and the Maple family established a farming community on what is now the Georgetown area of Seattle. At Alki Point in West Seattle, the Denny party originally camped and had an incomplete hut with no roof. Permanent structures were added to the Collins party colony, which quickly began to produce meat and produce for sale and barter. Arthur A. Denny left the old Alki location in April 1852 in favor of a more secure location on Elliott Bay, which is now a portion of downtown Seattle. After King County was established in 1852, its first commissioners were Arthur A. Denny and Luther Collins. The area directly south of Denny’s was also being settled at the same time by David Swinson “Doc” Maynard.
Reverse mortgage rates Seattle
As a homeowner, reverse mortgage makes you live a more comfortable retirement. It allows you to continue living in your home while also getting paid. Reverse mortgage rates will vary opto the current market rates, loan amount and credit history. Contact the Kevin A. Guttman team to see what today’s mortgage rates are, call (877) 251-9709
Here are the benefits to a reverse mortgage.
You remain as the homeowner on title.
You still retain ownership of your home.
You can also choose to take your funds whichever way you desire.
You can take it as a lump sum at once.
You can also take it as a line of credit that can be tapped when needed.
You can choose to have a steady stream to be paid monthly for a specific period, or as long as you are still a resident of the home.
You are entitled to as citizens from the government are generally not affected by a reverse mortgage loan.
You’ll still get your social security or your Medicare benefits.
Once your loan has been repaid, you or your heirs are entitled to the remaining equity. In other words, the remaining equity belongs to you. These are the benefits of taking a reverse mortgage.
Seattle reverse mortgage broker
Another option is that you can be paid with a combination of these options. However, if you opt for a fixed-rate loan, you’ll be paid a single disbursement lump sum. This is good if you have a significant project you need to spend on. Contact the team at Kevin A. Guttman to get more information on a reverse mortgage.
Like every form of home financing, there are pros and cons to each. For many, a reverse mortgage is a huge lifeline and well suited to their particular situation. For those homeowners, the pros of a reverse mortgage outweigh the cons.
Here are some reverse mortgage pros for your consideration.
The proceeds are not taxable.
The borrower is not responsible for the repayment of the loan.
Backed by the Federal Housing Administration.
You can pay off any time, no pre-payment penalty.
Equity doesn’t count as income and shouldn’t affect Social Security or Medicare benefits.
The term of the loan goes to age 150 of the youngest borrower.
The loan can be fixed or adjustable-rate.
Here are the cons of a reverse mortgage.
Property taxes, homeowners insurance, other housing fees such as HOA dues or Flood insurance must be paid by you as with any home. You have to live in the home 6 months or more a year as your primary residence, and maintain the home.
A reverse mortgage has strict regulations by the Federal Government.
Closing costs are higher than on a traditional mortgage.
There is a lien placed on the home.
There will be less equity for the heirs.
Loan balance can grow over time
What qualifies for a reverse mortgage in Seattle WA?
This particular type of home financing is only available to senior homeowners and the program has been recently reformed to be more fair and favorable towards seniors. A reverse mortgage, for many, is a solution that changes their life.
You must be 62 years or greater to qualify.
Not all properties qualify for a reverse mortgage.
You must have enough equity to qualify.
Vacation homes and investment properties are not eligible.
One couple we recently helped wanted to downsize to a house that had main floor living and no yard maintenance. They had enough equity in their home to qualify for the HECM For Purchase (H4P). They were able to purchase a home with main floor living in the neighborhood close to their grand kids and have NO monthly mortgage payment. For them, the cons of a reverse mortgage were outweighed by the benefits!
Jumbo reverse mortgage in Seattle
A jumbo reverse mortgage can help you tap into your home equity during retirement and help you face everyday challenges. When you meet the age and credit score requirements, the jumbo reverse loans can be a place to age and increase your cash flow with rising healthcare costs, education, or helping out other family members.
Jumbo reverse mortgage loans are targeted at new homeowners with homes valued upwards of 600,000$. These loans come with some essential key features that make them stand out, providing more alternatives and borrowing power for homeowners with high-valued properties.
Private firms and larger banks are generally responsible for jumbo reverse mortgages, however, mortgagers are subject to the same obligations under traditional reverse mortgages to finance their high-valued property.
Reverse mortgage lenders near Seattle WA
If you want to know if a reverse mortgage is right for your situation, you can get a free confidential analysis. We’ll ask a few questions and can easily determine if your property qualifies for a reverse mortgage. Get your FREE confidential analysis.