Paying for a specific lifestyle along with living costs is important to most California citizens. For most senior citizens reverse mortgages act as an asset as they can plan their heirs benefits by using the reverse mortgage loan money.
Types of reverse mortgagesThere are three different types of California reverse mortgages for the senior citizens across California. But before choosing from any one of them the senior citizen must know is requirement along with the federal specialist agent’s recommendations on reduced state benefits of getting a reverse mortgage. The three different California reverse mortgages include:
- Single purpose reverse mortgage
- Home equity conversion mortgages
- Private property reverse mortgages
Single purpose reverse mortgage loansThis type of California reverse mortgage loan is the cheapest of all types available in the market. But they can only be used for a single purpose by the senior citizen. These purposes might include:
- The payment of property taxes
- The home repair bills
HECMs (Home equity conversion mortgages)Probably these tend to be the least expensive California reverse mortgage that you can find in the market place. Secondly the best thing about these reverse mortgage loans is that they are federally ensured by the American government itself. That’s why the cheap price along with the governments insurances makes this type of reverse mortgage stand out from the others. This is probably an added advantage for most of the senior citizens residing in California. But the trailer homes are not applicable for these reverse mortgages.
Misconceptions and myths about reverse mortgageThe American senior citizen population has certain misconceptions about California reverse mortgage. The very first question that they tend to ask is about the popularity of the type of reverse mortgage that they are opting for. Is the mortgage popular in the industry or not?
- Will the lender have the home ownership during the contract that includes reverse mortgage?
- Will my heirs pay for the loan after me
- Do I need to have a 0% debt in order that I qualify for the California reverse mortgage loans?
- Do I need to have a good credit balance before I apply for the reverse mortgage loans?
- Is the reverse mortgage industry for poor people only or do rich qualify for it also?
- Will I be on debit during the reverse mortgage contract?
- If incase the loan becomes due will the lender sell my house in return for the loan?