All You Need to Know about Reverse Mortgage in California
If you are interested in reverse mortgage, there are some important information that you need to know about the whole process. The reverse mortgage can be used to help you access some of the equity in your home. Most people will use the reverse mortgage insurance to pay some unexpected bills like the hospital bills, home improvement or supplementing of social security.
It is important to get the right information before you decide whether it suits you. The first step is to know what it is before you decide whether it is what you want. A a reverse mortgage is a type of loan that you get on top of the existing home mortgage. 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.
You can also apply for this kind of reverse mortgage calculator even when you did not purchase your house with insured mortgage. Another thing you may be asking yourself s whether your home can qualify for this kind of mortgage. to qualify for the loan your home must be a single home occupier. Are you asking yourself the different between a reverse mortgage loan and a home equity loan.
The borrower of the equity loan pays both the principal and the interest on monthly basis. The payment also includes taxes, and insurance premiums. what you may also be interested to know is that in case you want to sell the house while you still have the loan, you must clear all the loan balance at the time of selling. That means before you can transfer the house to the new buyer, you must clear your mortgage. 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 for each borrower is different depending on some factors. The the first factor that affects the amount is the age of the person acquiring. Another factor is a no eligible spouse. For more facts and information about reverse mortgage, visit http://www.ehow.com/how_2045958_become-mortgage-broker.html.