Can You Afford A Reverse Mortgage in Los Feliz?

Be smart about the decision to get a Los Feliz reverse mortgage.

It's important to evaluate whether staying in your home is a viable option, even with a reverse mortgage - there are costs to home-ownership that the borrower must continue bear, even after the reverse mortgage closes.

• Property Taxes
• Home Insurance
• Maintenance
• Homeowners Association Dues when applicable.

What are these amounts annually? Figure that out and divide by twelve, then set up a special account that you deposit into every month so when these bills come due you have the money to pay them.

Typical Example in Los Feliz

• $3,566,00 Annual Property taxes (don't forget property taxes can go up 2% per year AND special assessments may be added with a ballot initiative for schools and infrastructure even if you've lived in your Los Feliz home for 45 years.)
• $1,150.00 Homeowners Insurance
• $3,600 for maintenance and lawn upkeep.
• $0.00 HOA Dues

$8,316.00 divided by 12 = $693.00 Monthly Budget for the "obligations" on a reverse mortgage in this scenario. Granted, this may be very doable for you, especially if you are eliminating a current mortgage, but remember to include it in your budget post closing on your reverse.

If you cannot comfortably afford these costs even with the help of a reverse mortgage you may just be postponing the inevitable.