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 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, however, are not the same, and as you get older, the more cash will be available to you through 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 only end up receiving a lot less money than they were expecting. At the end of the day, you just want to learn more about the process of getting a reverse mortgage loans so you know what you should look out for.
To qualify for loan like this, the minimum age is sixty-two. As we earlier said, you should also completely, or nearly completely, finished with all loans you made on the property.
Those who actually owe money on a current mortgage or home lien will be able to use their reverse mortgage loans to pay off that debt. 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 website of the National Reverse Mortgage Lenders Association (NMRLA) to learn more about reverse mortgage lenders California. Simply enter your state and you will get a list of options. 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 additional precaution, you should consult an attorney who is familiar with reverse mortgage loans before you sign any papers. There are times when seemingly small details turn out to be so huge, and that’s not exactly a surprise you’ll welcome. Hence, asking for legal advice always comes in handy when you’re trying to decide on a particular reverse mortgage loan package.