What Are Reverse Mortgage Loans?
If you are one of the countless senior citizens in California who are close to retirement with less financial security than you had ever imagined, you may be missing one of your largest financial assets – your house. 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 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. 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 just end up with a much lower amount of money than they expected. At the end of the day, you have to know more about obtaining a reverse mortgage loans so it’s easier to spot the warning signs.
To qualify for this type of loan, you must be at least sixty-two years old. As we earlier said, you should also completely, or nearly completely, finished with all loans you made on the property.
Those who do owe cash on an existing mortgage or home lien may use their reverse mortgage loans to cover 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.
Picking the Right Lender
The best way to make sure that you will be happy with your reverse mortgage loan is to choose a reputable 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. 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 an extra precaution, you can ask a lawyer to review the terms and conditions of the loan before you sign anything. Sometimes, seemingly small details can make a bigger impact than you think, and that is not the kind of surprise you want. Thus, you shouldn’t hesitate to ask for a legal professional’s opinion before making any decisions.