California Reverse Mortgages Provide Key To Unlock Home Equity For Seniors
Released on = September 7, 2006, 7:29 am
Press Release Author = Camelot Marketing
Industry = Financial
Press Release Summary = California reverse mortgages allows seniors to supplement income by converting a portion of the home equity into cash.
Press Release Body = California reverse mortgages are becoming extremely popular with seniors in this state since The U.S. Department of Housing and Urban Development (HUD) created one of the first.
"A reverse mortgage in California allows older Americans to supplement social security, meet unexpected medical expenses, make home improvements or take a vacation by converting a portion of the home equity into cash,\" states George Lincoln, Vice President of FreeFinancialConsulting.com
"FreeFinancialConsulting.com is not a mortgage broker but offer free advice to the public on all personal money matters, including all home loans, and California reverse mortgages. California reverse mortgages are of interest to seniors and children that are concerned about their parents\' financial well being in later years."
"Unlike a traditional home equity line of credit (HELOC) or second mortgage, repayment is not required until the borrower no longer uses the home as a principal residence,\" continues Lincoln.
"To be eligible for a California reverse mortgage the borrower must be at least 62 years old, own the home and also live in it. The mortgage balance must be low enough that it can be paid off at closing with proceeds from the California reverse mortgage."
"With a traditional second mortgage loan, or a California home equity line of credit (HELOC), there must be sufficient income versus debt ratio to qualify for the loan, and monthly mortgage payments are required. The California reverse mortgage is different in that it pays the homeowner and is available regardless of current income."
"The California reverse mortgage amount depends on the borrower\'s age, current interest rates, the type of reverse mortgage selected and the appraised value of the home."
"The loan is not repayable as long as one of the borrowers continues to live in the house and keeps taxes and insurance current. Seniors quite often use the money for medical treatment, home improvement or repairs, long-term care insurance or just to supplement their income."
"One important concern for seniors is that a reverse mortgage in California allows them to convert home equity to cash while retaining home ownership."
"If the home is sold or no longer used as a primary residence, the homeowner or the estate repays the California reverse mortgage, plus interest and other fees, to the reverse mortgage lender."
"Because California reverse mortgages are considered loan advances and not income, the IRS considers them to be Not Taxable."
The remaining home equity belongs to the homeowner or heirs. No other assets will be affected by a reverse mortgage in California and the debt will never be passed along to the estate or heirs. "
"Our seniors deserve financial peace of mind in later years and a reverse mortgage in California offers that,\" concludes Lincoln.
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