Features & advantages of Reverse Mortgage Loans

Posted by Rainmaker Reverse on April 30th, 2019

For many people, reverse mortgage is a great way to improve their financial life after retirement. It is getting popular nowadays among senior citizens looking for source of income after retirement.

Reverse Mortgage California acts as valuable tool for senior citizens who are looking to supplement their retirement income. It enables homeowners to borrow equity, so that lender makes payment to the borrower in any of the following ways:

• A lump sum money

• Monthly payment, for as long as the borrower occupies the home
• Periodic advances through a line of credit
• Combination of any of the above 

With Reverse Mortgage, the owner of the home remains the owner as long as you pay your property taxes and homeowner’s insurance and comply with the conditions in the term. Unlike a home equity loan, the borrower’s homecannot be taken from them for non-payment of the loan until they leave their home permanently. Also, one don’t need to make any monthly mortgage payments and instead payments are made to you as long as they live in their home with absolutely no monthly mortgage payments and sometimes you can also get access to money to use for any purpose. The loan is repaid when you sell your home or when the last borrower leaves the home.

Unlike traditional loans, reverse mortgage loan is insured by the federal government, so if the amount of loan is more the value of the home when sold, the difference will be covered by government insurance,

Each person has different needs and hence reverse mortgage gives you advantage of its different disbursement options. One can choose for full or partial sum, a line of credit, monthly payments, or a combination of any of these.

Reverse mortgage is a flexible loan product that can be used in different ways for a variety of borrowers. For instance, household with financial needs can use it as resource of regular income during post retirement period, while other can use at financial planning tool.

It is recommended to get reverse mortgage from reputable lending institutions and Reverse Mortgage Companies. It is also important that borrowers acquire adequate information from all the available resources and get counselling from experts about the risks and pitfalls before committing to a reverse mortgage.