California Reverse Mortgage - Reverse Home Loan Refinance
What is a California Reverse Mortgage?
A California Reverse Mortgage is a special type of mortgage loan made to older homeowners to allow them to convert the
equity in their home to cash in order to finance their living expenses, or do home improvements, to pay for in home health
care, or many other needs.
With a California Reverse Mortgage, the monthly mortgage payment stream is "reversed." In otherwords, the payments
are made by the California Reverse Mortgage Lender to the borrower, rather than monthly mortgage repayments by the borrower
to the California Reverse Mortgage lender, as occurs with the standard "forward" mortgage loans.
A California Reverse Mortgage is actually a intricate financial planning tool that allows seniors to stay in their home
or "age in place" and maintain or improve their living standards without taking on the burden of a monthly mortgage payment.
The mortgage process of obtaining a California Reverse Mortgage involves a small variety of steps.
The first and most widely available California Reverse Mortgage in the United States is the federally insured
Home Equity Conversion Mortgage (HECM), which was authorized by the government in 1987.
A California Reverse Mortgage is different from the standard home equity loan or line of credit, which most banks
and thrifts currently offer. With the standard home equity loan or line of credit, a borrower must meet certain monthly
income and credit requirements, then begin monthly mortgage repayments immediately, and the home can have an existing
first mortgage loan on it. In addition, there is no restriction on the borrowers age.
In general, California Reverse Mortgage are limited to borrowers 62 years or older, who own their home free and clear
of debt or close to it, and also the home is free of government and state tax liens.
Borrowers have a choice of receiving the loan proceeds from a California Reverse Mortgage in the form of a lump sum
payment at the close of escrow, additional fixed monthly payments for life, or even a line of credit. Some types of
California Reverse Mortgages also allow fixed monthly payments for a finite time period, or even a combination of
monthly payments and a line of credit. The mortgage interest rate usually charged on a California Reverse Mortgage is
an adjustable rate that changes monthly or sometimes yearly. However, the size of monthly mortgage payments received by
the senior doesn't change for the term of the California Reverse Mortgage.
Some California Reverse Mortgage products also involves the purchasing of an annuity that can help to assure continued
monthly income to the senior even after they sell the home.
The size of California Reverse Mortgage that a senior homeowner can receive primarily depends on the type of
California Reverse Mortgage, the borrower's current age, the current mortgage interest rates, and the value of the home.
The older the borrower is, the larger the additional monthly payments or line of credit. This is because of the use of
projected life expectancy is used in determining the size of the California Reverse Mortgage.
Have one of our California Reverse Mortgage Representatives contact you today.
How do I qualify for a California Reverse Mortgage?
Seniors do not have to meet any standards of income or credit requirements in order to qualify for a California
Reverse Mortgage.
Unlike a standard mortgage loan or or home equity loan, a California Reverse Mortgage doesn't require monthly mortgage
repayments by the borrower to the California Reverse Mortgage Lender. A California Reverse Mortgage isn't repayable until
the borrower no longer occupies the home as his or her primary residence.
This can usually occurs if the sole remaining borrower dies, then the surviving borrower sells the home, or the
surviving borrower moves out of the home.
The repayment obligation for a California Reverse Mortgage is equal to the principal balance of the loan, plus the
accrued mortgage interest, plus any mortgage finance charges paid for through the California Reverse Mortgage. This
repayment obligation, however, usually will not exceed the home's value
The California Reverse Mortgage may be repaid by the borrower or the borrower's family or borrower's estate, with or
without the sale of the home. If the home is sold and the sale proceeds exceed the repayment mortgage obligation, the
excess of funds go to the borrower or the borrower's estate. If the sale proceeds are less than the mortgage amount owed,
the deficiency is usually covered by insurance or some other party, and is not the responsibility of the borrower or
borrower's estate. In general, the repayment of the mortgage obligation of the borrower or borrower's estate cannot exceed
the property's value.
Here is additional information for the different available Mortgage Loan Programs
Tell me more about a California Reverse Mortgage?
I've heard that I lose control of my ownership in the home, is this true? - Absolutely not, you do not lose control
of your ownership of your home when you obtain a California Reverse Mortgage. Your home can be sold at any time, and
whenever you choose. If at the time of sale, there is remaining equity in your home, well it belongs to you or to
your heirs.
What if I have poor or bad credit, can I still qualify? - Absolutely, credit history is not a factor in the California
Reverse Mortgage approval process. A poor credit history is widely acceptable. You can not be denied a California Reverse
Mortgage because of poor or bad credit, prior mortgage delinquencies or even an active foreclosure. If you have financial
problems a California Reverse Mortgage could be the solution. Even outstanding collections, judgements or tax liens
can be paid from the California Reverse Mortgage loan proceeds. Active bankruptcies must be discharged at least one day
prior to funding.
Does my home have to be free and clear, and mortgage free? - Absolutely not, you do not have to own your home
"Free and Clear" to qualify for a California Reverse Mortgage. Existing mortgage loans can be paid off with the proceeds of a
California Reverse Mortgage in escrow.
Specializing in these Mortgage Metro Areas in California:
Adelanto | Alta Loma
| Apple Valley | Applevalley | Barstow | Banning | Beaumont | Bloomington
| Canyon Lake | Chino | Chino Hills | Colton | Corona | Fontana | Grand
Terrace | Hemet | Hesperia | High Desert | Highland | Inland Empire
| Lake Elsinore | Loma Linda | Lucerne Valley | Menifee | Mira Loma
| Montclair | Moreno Valley | Murrieta | Norco | Nuevo | Ontario | Palm
Desert | Palm Springs | Perris | Phelan | Rancho | Rancho Cucamonga
| Redlands | Rialto | Riverside | San Bernardino | San Jacinto | Temecula
| Twentynine Palms | Upland | Victorville | Victorvalley
