Since the U.S. Department of Housing and Urban Development (HUD) made one of the first, reverse mortgages are becoming very popular with seniors in California.
A California reverse mortgage lets older people get more money than they would get from social security, pay for unexpected medical bills, make home improvements, and do other things.
With a reverse mortgage, the homeowner can turn some of the value of their home into cash. Unlike a traditional home equity loan (HELOC) or second mortgage, the borrower does not have to pay back the loan until they no longer live in the home.
To get a California reverse mortgage loan, the borrower must be at least 62 years old, own the home, have a low mortgage balance that can be paid off at closing, and live in the home.
With a traditional second mortgage loan or a home equity line of credit (HELOC) in California, you must have enough income compared to your debts to qualify for the loan, and you must also pay your mortgage every month.
The California reverse mortgage loan is different because it pays the homeowner and is available to anyone, no matter how much money they have now.
The amount of a reverse mortgage loan depends on the age of the borrower, the current interest rate, other loan fees, and the value of the home.
The loan doesn't have to be paid back as long as one of the borrowers stays in the house and pays the taxes and insurance on time.
If the homeowner sells the home or stops using it as their main home, they or their estate must pay back the reverse mortgage, plus interest and other fees, to the reverse mortgage lender.
The owner or their heirs own the rest of the home's equity. A California reverse mortgage loan will not affect any other assets, and the debt will never be passed on to the estate or heirs.
For more information about a California reverse home mortgage loan, call Goldmedalmortgage.com at 866 398 4664 or go to http://www.goldmedalmortgage.com.
