Essential information on Reverse Mortgages in California
If you want to know about a reverse mortgage, here are some vital information you may need to know. One of the great importance of reverse mortgage is to allow you draw some of the equity from your home. Some of the main areas where people use this reverse mortgage is when paying medical bills, supplementing social security or even to improve the home and many others.
You will need full information about the mortgage before you decide whether it is the best option for you. The first step is to know what it is before you decide whether it is what you want. A reverse mortgage is a special type of house loan that enables you to convert some of the equity into cash. It differ with the other loans in that you do not have to repay the loan until you stop using the house as your residential home or you do not meet the obligation of the initial mortgage repayment.
The other important information is on who qualifies for such a loan? The first thing is to be a homeowner and one who is sixty-two years of age and above. You should have minimal amount of mortgage remaining or be a homeowner outright. You have to be using the home as your residence, have cleared the loan or with little balance that can be paid for using the reverse mortgage and also show evidence of income to enable you to pay the other loan.
You can also apply for this kind of mortgage even when you did not purchase your house with insured mortgage. Another thing you may be asking yourself s whether your home can qualify for this kind of mortgage. You need to be a single family occupier of the home for you to qualify. You may be interested to know what is the difference between a reverse mortgage and a home equity loan.
The borrower of the equity loan pays both the principal and the interest on monthly basis. It also includes the payment of taxes, utilities, and insurance premiums. You may also d to know that you have to clear your loan if you were to sell the house. That means you cannot sell the house and transfer ownership before the loan is fully repaid. A person selling the home whether spouse or child, will have to pay the loan first and the remaining amount is what they will have for their use. The amount for each borrower is different depending on some factors. The the first determinant factor is the age of the person borrowing. The no eligible spouse is another factor that can affect the amount.
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