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 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 though, and the older you become, the greater the amount you can get from the loan.
Though a reverse mortgage loan may seem too good to be true, there are safeguards you need to take when applying 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 unlucky applicants only end up getting far more less money than they hoped. 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 earlier mentioned, you also have to be completely, or almost completely, done with all loans on your house.
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 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. 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 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. Thus, you shouldn’t hesitate to ask for a legal professional’s opinion before making any decisions.