California Reverse Mortgage - Why We Cant Live Without Them
California, May 2007
There are plenty of reasons why one should like reverse mortgage. Anyone whose age is about 62 or older and owns her own home and needs to supplement her retirement income can use a reverse mortgage to obtain needed cash to support her and still remain in her home. In a nutshell, a reverse mortgage pays the homeowner by tapping into the value of her home. It is a special type of home loan that lets a homeowner change a portion of the equity in his or her home into cash. The equity built up over years of home mortgage payments can be paid to you. One of which that offers such the California reverse mortgage.
The cash you get from California reverse mortgage can be paid out as a lump sum, a regular monthly cash advance or a credit line to draw upon when ever needed. The amount you can get from California reverse mortgage depends on the value and location of your home, and current interest rates. Generally, the more valuable your home is, the older you are, the lower the interest, the more you can borrow from California reverse mortgage. Depending upon the type of reverse mortgage you obtain, you can use the cash for everyday expenses, prescription drugs, in-home care, or home improvements and repairs.
If you own your home free and clear or if you have only a small mortgage, then you can qualify for the California reverse mortgage against your home no matter what the rest of your financial picture looks like. There are no income requirements, and most of all no credit check. It is important to know that as long as you live in your own house, you don’t have to pay California reverse mortgage back, for as long as you stay current with real estate taxes and insurance payments. When you sell your home or no longer use it for your primary residence, you or your estate will repay the cash you received from California reverse mortgage, plus interest and other fees, to the lender. The remaining equity in your home, if any, belongs to you or to your heirs. None of your other assets will be affected by California reverse mortgage loan. This debt will never be passed along to the estate or heirs.
The California reverse mortgage loan comes due only when you sell the house, move to other living arrangements or you passed away. If you haven’t used up all the equity in your house, you or anyone from your heirs get the balance back, after interest has been paid, which will be calculated over the life of the loan, along with other California reverse mortgage loans. Take note that if you take a California reverse mortgage and later decide to sell your home and move into a smaller home or apartment or assisted living, the money that you’ve already borrowed and spent won’t be available. Be sure that you really want to stay in your home long-term before taking a California reverse mortgage loan.
Written by charles dennis on May 12th, 2007 with
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