What Are Reverse Mortgage Loans?
If you are one of the many senior citizens in California who are approaching retirement with less financial security than you had ever thought possible, you may be ignoring one of your major financial assets-your home. If you have settled your mortgage completely, or almost completely, you can look into taking out 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 can stay in your home and the loan need not be repaid until you leave your house for good or decide to sell it. A reverse mortgage loan and a home equity loan are not the same though, and the older you become, the greater the amount you can get from the loan.
Although a reverse mortgage loan appears too good to be true, there are steps you have to take when you apply for one. Several applicants for reverse mortgage loans become victimized by unscrupulous loan brokers or reverse mortgage lenderswho demand undisclosed charges to their services. Those unfortunate applicants just end up with a much lower amount of money than they expected. 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 earlier mentioned, you also have to be completely, or almost completely, done with all loans on your house.
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.
Finding the Right Lender
The most effective way of ensuring that you will be happy with your reverse mortgage loan, is to find yourself a trustworthy reverse mortgage lenders in California. Check the National Reverse Mortgage Lenders Association (NMRLA) website to know more about reverse mortgage lenders California. Just enter your state and you will get a whole list of loan providers. The NMLA is a good place to look because all lenders on this site are bound by a strict Code of Conduct, which was created for the protection of 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.