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California Reverse Mortgage |
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Since the U.S. department of Housing and Development has created the first California reverse home mortgage, everyone wants to get one. Any person that is at least 62 and owns a home can get this kind of loan. A reverse mortgage can help senior citizens accomplish their retirement plans and the money can be spent in any way. People have taken loans for home improvements, vacations, medical expenses or just for financial security throughout retirement. A California reverse home mortgage is the opposite of a traditional mortgage: instead of making monthly payments to the lender, you can receive monthly income from him. The money can also be received in a full lump and the sum is not taxable. When the borrower dies or sells the house, the loan is repaid. You can get a California reverse home mortgage no matter your income. It only depends on your age, the value of the home and its location.
If one of the borrowers still lives in the house, the loan doesn't have to be repaid. The ownership title of the house remains in the borrower's name at all times. When he decides to stop using the house as a primary residence, the house must be sold and with the money received, the reverse mortgage must be paid. The house is always more valuable than the California reverse home mortgage loan and the rest of the money go to the borrower or to his heirs. With a California reverse home mortgage loan, no debts will be passed to the borrower's heirs in case of death. Actually, most reverse mortgage loans end up with the death of the borrower and the repayment process starts there.
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