There are several reasons or shortcomings that most senior citizens living in California need to overcome via California reverse mortgage. Some have debts and monthly bills greater than debts to pay. Whereas others need the loan for their particular health issues like medications. Some seniors specially pay off their property taxes that have piled up over the years. That is what saves all the senior citizens from either getting homeless or bankrupted. The higher class specifically does this for their lifestyle. This money is either used by them on travelling or on their loved ones. The generous always pay for their grandchildren’s college fee.
The marketing hype for these reverse mortgagesNowadays there is a great hype for these California reverse mortgage loans, in the market. Everybody is looking out for a solution to live a comfortable senior life without worry. But for most common California residents they still believe that there are advantages and disadvantages to the reverse mortgage loans. A look into the pitfalls and benefits of these reverse mortgages helps them decide better weather to opt for it or not.
The benefits, pros and advantagesApart from giving your property for sale or rent reverse mortgage is the one solution to get money from your home. The properties monthly loan that needs to be paid out in installments is a nuisance for most home owners. So what is so special with reverse mortgage? Actually reverse mortgage allows you to not pay the loan amount as long as you are still living inside the apartment or are alive. This loan becomes payable only when you are shifting or on your death. In most other cases the loan is also payable once the house is sold. The lender of the loan can pay it out in any of the three ways mentioned below:
- Monthly payment
- Big sum of money
- Through a line of specific credit
The disadvantages of reverse mortgagesAccording to most of the federal government consulting agencies there can be certain disadvantages of getting reverse mortgage loans. The disadvantages are mentioned below:
- The inheritance of the specific property can be effected especially by the heir of the borrower
- This might make the borrower ineligible for other different types of loans
- The borrower of the reverse mortgage might become ineligible for SSI and medical aid.