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Reverse mortgages are becoming extremely common with seniors in California since the U.S. Division of Housing and Urban Development (HUD) created 1 of the 1st.

A California reverse property mortgage allows older Americans to supplement social safety, meet unexpected medical expenses, make property improvements, and more.

A reverse mortgage permits the homeowner to convert a portion of the home equity into cash. Unlike a conventional home equity loan (HELOC) or second mortgage, repayment is not needed till the borrower no longer uses the house as a principal residence.

To be eligible the borrower have to be at least 62 years old personal the residence and have a low mortgage balance that can be paid off at closing with proceeds from the California reverse mortgage loan, and should reside in the house.

With a conventional second mortgage loan, or a California residence equity line of credit (HELOC), there have to be adequate earnings versus debt ratio to qualify for the loan, and monthly mortgage payments are needed.

The California reverse mortgage loan is diverse in that it pays the homeowner, and is obtainable regardless of present income.

The reverse mortgage loan amount depends on borrower's age, current interest rate, other loan charges, and the appraisal worth.

The loan is not repayable as extended as a single of the borrowers continues to live in the residence and keeps the taxes and insurance coverage present.

If the home is sold or no longer utilized as a principal residence, the homeowner or the estate repays the reverse mortgage, plus interest and other costs, to the reverse mortgage lender.

The remaining property equity belongs to homeowner or heirs. No other assets will be affected by a California reverse mortgage loan and the debt will by no means be passed along to the estate or heirs.

For a lot more data on a California reverse house mortgage loan call Goldmedalmortgage.com at 866 398 4664 or go to < senior home care