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All You Need to Know about Reverse Mortgage in California

If you want to know about a reverse mortgage, here are some vital information you may need to know. One of the great importance of reverse mortgage is to allow you draw some of the equity from your home. Many of people use it to improve their homes, meet some unexpected expenses or even to supplement social security.

The information about the mortgage is vital when you are making your decision whether it is fit for you. The thing is to make sure you understand it before you decide whether it is what you want. A reverse mortgage is a special type of house loan that enables you to convert some of the equity into cash. The mortgage is different from others in that you are not obligated to start repaying he mortgage immediately unless you stop using the home as your residential place or you fail to meet your mortgager obligations.

The other question you may want to ask is who qualifies for such a loan? The first thing is to be a homeowner and one who is sixty-two years of age and above. You have to own your home out rightly, or you have a small surplus of mortgage remaining. You have to be using the home as your residence, have cleared the loan or with little balance that can be paid for using the reverse mortgage and also show evidence of income to enable you to pay the other loan.

For you to qualify for this kind of loan is not a must that you used insured mortgage to purchase the home. You may be asking yourself whether your home is among those that can qualify for the kind of loan. You need to be a single family occupier of the home for you to qualify. You may be interested to know what is the difference between a reverse mortgage and a home equity loan.

With equity loan, the borrower is required to pay both the principal and the interest every month. The the borrower will also be expected to pay the taxes, the insurance and the utilities. You may also d to know that you have to clear your loan if you were to sell the house. That means you cannot sell the house and transfer ownership before the loan is fully repaid. If you have left the house to your spouse or heir, then on selling the house, they will need to repay the loan and the remaining balance shall be for their use. The amount of money differs from borrower to borrower, and it depends on some factors. The the first factor that affects the amount is the age of the person acquiring. The no eligible spouse is another factor that can affect the amount.

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