Reverse Mortgage Loans and Their Benefits
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 have completed your mortgage payments, or almost there, you can mull over 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.
Even as a reverse mortgage loan seems too good to be true, certain precautions must be taken 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 unlucky applicants only end up getting far more less money than they hoped. 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 loan like this, the minimum age is sixty-two. As earlier mentioned, you also have to be completely, or almost completely, done with all loans on your house.
Those who do owe cash on an existing mortgage or home lien may use their reverse mortgage loans to cover those loans. But take note that reverse mortgage loans are binding, and that is why you have to choose from only the best reverse mortgage lenders as there is no turning back.
Picking the Right Lender
To ensure that you will end up happy with your reverse mortgage loan, you must choose 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, what seem to be small details can make a much bigger impact that you initially believed, and that is not the kind of surprise you will welcome. Hence, asking for legal advice always comes in handy when you’re trying to decide on a particular reverse mortgage loan package.