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MBA Urges Regulators To Avoid Invoking Suitability Standards
The Mortgage Bankers Association (MBA) recently made a preemptive strike against what it obviously perceives as the next threat against the mortgage industry - "suitability standards." Read more...

 

The Advantages Of California Reverse Mortgage Loans

Over 150,000 seniors have already benefited from the financial option of a California reverse mortgages. The California reverse mortgage is a kind of loan that enables senior homeowners, age 62 and older, to convert part of their home equity into tax-free income-without having to sell their home, give up title to their home or make monthly mortgage payments for that matter.

The money obtained through a California reverse mortgage can be used for anything, from daily living expenses, home improvements, healthcare expenses, paying off existing debts, or simply enhancing one's retirement years. For many people, this money will provide a "financial security blanket," for when unexpected expenses arise.

You won't need to pay back the California reverse mortgage loan to the lender nor make any monthly mortgage payments until the home is permanently vacated.

The money received from a California reverse mortgage loan can be used in any manner the borrower wishes and because it is not considered income, it is tax free and will not affect Social Security or Medicare benefits.

A California reverse mortgage loan can help senior citizens create a new source of tax-free money without having to sell their home. In fact, they can stay in the home and tap into money they've earned in the form of home equity and thus avoid having to depend on relatives for financial assistance.

The full title of the home is retained without any risk of losing the home to the lender. And no matter what happens to the housing market, senior citizens that opt for a California reverse mortgage can never owe more than the value of their home when it is sold.

When the last-remaining parent passes away, or moves permanently out of the house, the heirs can simply pay off the reverse mortgage principal plus accrued interest. If they want to keep the home in the family, a new traditional mortgage can be arranged, on the other hand if they don't want to, the home will be sold by the reverse mortgage lender in order to repay the loan.

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