California Reverse Mortgages by your Sacramento Reverse Mortgage Provider

California Reverse Mortgage Myths

California Reverse Mortgage Myths are Efficiently Dispelled

Everybody wants to live as long as possible, but questions around having enough money to enable you to enjoy a comfortable lifestyle put a damper on this thought. The beauty about a reverse mortgage in instances like these is that they provide seniors with some kind of financial leverage when facing difficult economic hardships. These loans, available to homeowners who are 62 years or older, allow retirees to convert part of the equity in their home into cash.

The cash is often needed to pay for sudden medical expenses, but contrary to the myths one hears, there are no restrictions on how the money can be used. California reverse mortgage myths want seniors to believe that these loans also need to be paid back within a stipulated time when in fact the loan needn’t be paid back while the seniors are still living in their homes and while they are contributing regularly to their tax and insurance payments.

Dispel the Myth you Can’t Use the Cash the way You Want To
Fortunately seniors who want to look at reverse mortgages are educated first by financial brokers to ensure they ignore the myths that a reverse mortgage is similar to a home equity loan and that the home is sold to the lender. Seniors are advised to ignore all these stories and clearly understand both the benefits and risks of taking the loan from a reliable source.

There are a number of California reverse mortgage myths doing the rounds like ‘if I outlive my life expectancy, will the lender evict me?’ or ‘are these loans only aimed at low income seniors?’ or ‘I believe there are some restrictions on how I use the money I get from my reverse mortgage’.

Many older people don’t contemplate a reverse mortgage because they believe in the myth that they cannot have any debt on their home in order to qualify for a reverse mortgage. It can come as a relief to know that this isn’t true and that if you have any outstanding balances on your mortgages, some of the loan can actually be used to pay for the existing loan.

A Popular Myth is that Heirs Don’t Benefit
Some of the other more common California reverse mortgage myths are that heirs will not inherit the home and that there are large out-of-pocket expenses too. Firstly, lender fees and closing costs are factored into the reverse mortgage loan, so seniors don’t have to look for additional money to pay these fees. Naturally borrowers with heirs also want to know what will happen to their home and the mortgage when they pass away. Many believe the myth that the home reverts to the bank on the death of borrower, but this isn’t the case. Reverse mortgage borrowers can sell their properties or they can leave their homes to their heirs. Yes it’s true that the reverse mortgage must be paid off, but remaining equity stays with the borrowers’ heirs.

Retirement Planning
These days it has become more important than ever to review your current provision for retirement. If you are over 62, you want one-stop financial security with tax free benefits, and this may mean dispelling all the ridiculous California reverse mortgage myths you are hearing regarding these loans.
Take advantage of the comprehensive and informative Reverse Mortgage Guides to assist you with providing sound information on your financial security so that you are not driven by fear and insecurity.