California Reverse Mortgages by your Sacramento Reverse Mortgage Provider

Is A Reverse Mortgage For You?

by Zachary Scott
May 21, 2009

Many retired american seniors are jumping at the opportunity to get a home equity conversion mortgage (reverse mortgage) to tap into their home equity.

The nation’s Reverse Mortgage Lenders asserts more than 112,000 reverse mortgages were sold in 2008. A study by AARP discovered that most seniors who took out a reverse mortgage were happy they actually did.

But prior to signing up for the reverse mortgage program, it is important to understand precisely why you need or want a reverse mortgage.

If you are 62 or older, reverse mortgages can let you tap into your house equity tax free.

Reverse mortgages don’t need a homeowner with good credit history like a traditional mortgage.

Actually, reverse mortgage borrowers with blemished credit pay the same rate as those with ideal credit.

Relying on the program you might receive an one-off sum, a credit line, or regular payments.

Also, the cash will not need to be paid back till you sell your house, stop living in it, or die.

Reverse mortgages do come with costs but the value is financial freedom.

HUD’s HECM (Home Equity Conversion Mortgage) also includes mortgage insurance.

Whilst these costs are not as high as those related to selling your house, they’re serious.

Often , you can minimize the consequences of up front costs if you stay in the home.

If leaving an unfettered home to your successors is vital, remember a reverse mortgage can exhaust the equity from the home.

These are some questions AARP suggests you consider before joining up for a reverse mortgage: Why are you wanting a reverse mortgage?

Do you need to cash to help pay your regular debts or are you looking to make a big purchase,eg a holiday or car?

Typically it is not sensible to use long term financing for short term items but that depends on your situation.

Can you afford the reverse mortgage fees?

Do you have enough equity in your house for a reverse mortgage?

The uneasy home market saw many of us stripped of lots of the equity in their houses.

Is there an alternate way you can borrow the money you need,eg a home equity line, which might essentially cost less in the long run?

For smaller amounts, home equity loans are preferable.

How is your credit rating and income?

If you have credit issues or inadequate earnings, a reverse mortgage might be the least expensive ( or only ) option open to you because there’s no credit qualifying and you are not making any monthly payments.

If you think and feel a reverse mortgage is right for your situation, we shop multiple banks and lender to ensure you get your best reverse mortgage loan.

Getting a quote from us is free and easy and has no obligation, just fill out the form on the right of page or call us at 866-309-6626.