Shasta County Reverse Mortgage
Your Shasta County / Mt. Shasta Reverse Mortgage Specialists
We are proud to be California's #1 rated reverse mortgage lender by the BBB with a Perfect 5.0 stars and A+ review. All Reverse Mortgage® lends in 14 states states nationwide, including Shasta, CA. All Reverse began in November 2007 and as the name implies, the only loan product that All Reverse Mortgage® originates is the residential reverse mortgage loan.
We offer reverse mortgages to Shasta homeowners and our staff has a combined lending experience exceeding 100 years with national mortgage banking experience on both coasts and points between. Due to this varied direct experience, All Reverse Mortgage® is well positioned to be able to assist borrowers with all specific needs associated with the reverse mortgage program.
About: Shasta County
Shasta County is located in the far northern reaches of the Sacramento valley and the largest city in the county is the City of Redding. The southern portion of the county extends into the Cascade Mountain Range. Shasta was one of California’s original Counties, created at the time of statehood. A few years later, parts of Shasta County were split off and given to Tehama and Siskiyou counties. Besides Tehama and Siskiyou, Shasta County is bordered by Trinity County, Modoc County, Lassen County and Plumas County. Some of the cities such as Redding, Anderson, Cottonwood, Red Bluff, Corning, Shasta Lake City and Millville are ideal government loan areas in the state of California. It shares some of the same lending characteristics as some of the cities of neighboring counties. The HUD reverse Mortgage program fits well with the homes in the Shasta/Tehama Counties, especially now that the lending limit for the program is set at one limit nationally of $417,000.
Shasta County Reverse Mortgage Limits
Shasta, Tehama and the surrounding counties contain properties with a wide range in values. Prior to HUD raising their limit to the $417,000 nationwide, these counties did not have the benefit of the highest HUD limits and therefore senior homeowners were not able to obtain as much cash under the HUD HECM Reverse Mortgage. Senior borrowers age 62 and over who are looking to refinance or purchase a home in Shasta, Tehama or any of the surrounding counties have been helped by the legislation that was passed in 2008.
And speaking of selling, HUD has announced that effective January 1, 2009, reverse mortgages can now be used for purchase transactions. Shasta, Tehama, Siskiyou, Trinity, Modoc and all surrounding senior residents who wish to relocate for any reason can now utilize the reverse mortgage program to purchase a home with no monthly payments as well. This includes seniors age 62 and over who are not currently homeowners.
A reverse mortgage uses actuarial tables much the same as insurance products and borrowers receive more money the older they are. Therefore, a 62 year old borrower just meeting the age requirement will receive much less cash than a 78 year old borrower with the same $400,000 home. When borrowers do not take all their funds at the beginning of the loan and choose to use the line of credit option, the line of credit grows annually on the unused portion as the borrower would be eligible for a higher loan amount at the increased age. Some borrowers have asked whether or not they should wait for a few years to apply until they are older to take advantage of higher principal limits for older borrowers. Only you and your trusted financial advisors know your situation but there are other factors which go into the determination of how much money you will receive on a reverse mortgage which also include interest rates and property values. If your property value declines, you may be eligible for less money. If the interest rates rise from their current near-historic low levels, then you may also be eligible for less money. And in some instances with the purchases, you have to wonder how long the current prices will remain as low as they are right now.
The other factor that changes on which we have already seen several changes this year alone is the margin. The margin is added to the index to determine the final rate you pay and margins have risen this year as uncertainty has grown in the mortgage secondary market. When the margin rises, your ultimate rate increases and you may receive less money if the margin and the index both rise at the same time. With the purchase program coming out, HUD uses the appraised value to determine proceeds to the borrower. Senior Shasta County borrowers who are able to find homes which appraise for more than the sales price will be required to put even less money down on purchases under the HUD program!
The only constant is your age…you do know how old you are and you do know when your next birthday is. No one can predict the future with interest rates or property values. If the values rise considerably, you can refinance a reverse mortgage and the HUD insurance does not need to be paid a second time…you would just pay the difference, if any, from your old premium amount to the new premium based on any increase in the principal lending limit in your area. The Senior Specialists at All Reverse Mortgage Company are committed to helping you with answering all your questions and if the reverse mortgage is right for you, closing your loan quickly and easily. If it’s time for you to put your equity in reverse so that you can keep your life moving forward, then we’re here to help!
Mount Shasta Reverse Mortgage Facts
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