What Are Reverse Mortgage Loans?
If you are one of California’s numerous senior citizens nearing retirement with less financial security than you had ever imagined possible, you may be forgetting one of your most sizable financial assets – your home. If you are done with your mortgage entirely, or almost entirely, you can think about getting a reverse mortgage loan.
A reverse mortgage loan offers you cash, a monthly payment, or a line of credit depending on your property’s appraised value. You may remain in your home and the loan does not need to be repaid until you sell the house or leave permanently. A reverse mortgage loan and a home equity loan are not the same, however, and the older you get, the more you can get from your loan.
Though a reverse mortgage loan may seem too good to be true, there are safeguards you need to take when applying for one. Plenty of applicants for reverse mortgage loans become victims of unscrupulous loan brokers or lenders who collect undisclosed fees for their services. Those unfortunate applicants only end up receiving a lot less money than they were expecting. At the end of the day, you owe it to yourself to know more about the process of obtaining a reverse mortgage loans so you know what to watch out for.
To qualify for a reverse mortgage loan, you have to be no younger than sixty-two. As we earlier said, you should also completely, or nearly completely, finished with all loans you made on the property.
People who do owe money on a current mortgage or home lien can use their reverse mortgage loans to settle those loans. But note that reverse mortgage loans are binding, so you need to select from the best best reverse mortgage lenders in California no less, as there’s no more no turning back.
Choosing from the Best Reverse Mortgage Lenders in California
To ensure that you will end up happy with your reverse mortgage loan, you must choose a trustworthy reverse mortgage lenders in California. Look in the National Reverse Mortgage Lenders Association (NMRLA) website to find reverse mortgage lenders Californiaand know more about them. You just have to enter your state and you will get a long list of options available to you. The NMLA may be the best place for you to look in as all California reverse mortgage lenders on this site are bound by a strict Code of Conduct, which was specifically created to protect senior citizens.
As an added safeguard, it would be wise to have an attorney review your reverse mortgage loan terms before you sign any documents. Sometimes, seemingly small details can make a bigger impact than you think, and that is not the kind of surprise you want. A legal expert’s opinion thus goes a long way when it comes to deciding on a reverse mortgage loan package.