California Reverse Mortgage

A California reverse mortgage allows retirees and the elderly to remain financially independent with a steady and reliable income stream throughout the best years of their lives.  This mortgage option taps into the equity you’ve built up in your home and converts it into cash you can put toward living expenses and other purposes.

Reverse Mortgage California Information

There are no mortgages on the market that function the same way reverse mortgages do.  These loans are entirely unique and limited exclusively to senior homeowners.  In a reverse mortgage, your lender provides you money on a monthly basis or as a lump sum until the equity of your home is depleted.  You don’t have to make payments on this mortgage.  This mortgage pays you.

Reverse mortgages in California are popular for this reason.  The money you receive from your lender can be spent on whatever you need it for.  This may include medical expenses, debt payoffs, a nice vacation, or even the down payment on a new home.  Study as much reverse mortgage information as you can to learn more about the benefits of this loan type.

To receive funds from your lender, you can arrange virtually any payment method you like.  Each of the following options is available to you.

• You can get the money all at once as a lump sum.  This is helpful if you plan to use the money to purchase a new home or if you wish to invest it elsewhere.
• You can access it as you need it through a line of credit secured by your home.  This is best if you have variable expenses that come and go.
• You can receive a payment of a set amount each month for as long as the equity lasts.  This is the most common method used by seniors and the elderly.
• You can combine any of the above methods to create a flexible payment plan that meets your needs.

When your lender provides you money each month or as a lump sum, the lender takes over ownership of an equivalent portion of the value of your home.  But you don’t need to worry about losing your home.  The lender only owns the equity, not the home itself.  The title or deed remains in your possession, with your name on it, at all times.

When you pass away, the loan amount becomes due and the responsibility of paying it off transfers to whoever receives ownership of your home.  This will likely be your children or other heirs.  Typically, your heirs will sell off the home in order to pay back the debt owed through the reverse mortgage.  The government has created laws that will protect your heirs from paying back more than what the home is worth.

If you have additional questions about reverse mortgages, read through the HUD’s Frequently Asked Questions or contact a lender in our network for answers.

California Reverse Mortgage Lenders

Before you can take out a reverse mortgage, you need to find a lender to work with.  This is an important step in the process.  Each lender you contact will offer you a different rate.  This rate is important, as it will directly influence how much of your own money you’ll be able to take advantage of.  Find the lender who offers the lowest rates.

The most important consideration, though, is the cost of taking out the loan itself.  Every lender will charges you fees and closing costs on your reverse mortgage.  This is normal.  It’s just part of the process.  But you should try to find the lender who will charge the lowest fees on your loan.  Read through our reverse mortgage checklist to get more information on this.

About California

In California, the senior citizen population is expected to grow more than twice as fast as the total population.  With well over two million senior Californians, California has the largest older adult population of any state in the nation.  Reverse mortgages have become a beneficial part of life for 60% of all seniors in the state.

California is ranked as the most populous state in the nation and represents 13% of all national gross domestic product.  Hollywood, Los Angeles, Silicon Valley, and Napa Valley are some of the most well known parts of the state.  Hollywood is the global center of entertainment and media.  Los Angeles needs no introduction.  It is considered to be one of the two leading American cities.  Silicon Valley is known as a technology center, and Napa Valley is one of the world’s most well known wine production centers.

The city of San Francisco is another globally recognized region that hosts the headquarters of numerous large corporations.  The city, with nearby San Jose, represents one of the most powerful economic areas in the nation.

Each of these areas and others are popular destinations for retirees and home to many seniors who have used reverse mortgages to secure steady retirement income.

Rich Iacovetta - RMI Lending
Shopping for interest rates online can be dangerous. Especially if you don't know the right questions to ask a lender. Before you buy a home or...
Message | Website | Rates | Profile | Map | Reviews

Popular loan programs

Lenders in: California.