Reverse Mortgage Refinance
Refinancing a Home with a California Reverse Mortgage
For homeowners aged 62 and older in California, the Home Equity Conversion Mortgage (HECM) offers a unique and federally-insured option for refinancing, providing financial flexibility and security in retirement. As a specialized form of reverse mortgage, the HECM allows seniors to leverage the equity in their homes without making monthly mortgage payments, empowering them to address evolving financial needs and maintain a comfortable living situation
The California HECM stands as a powerful financial tool for seniors, ensuring they can make the most of their home equity while enjoying the benefits of homeownership in their retirement years. Whether seeking additional funds, eliminating monthly payments, or securing a tax-free resource, the HECM provides a tailored solution for seniors in California.
Reverse Mortgage, or Home Equity Conversion Mortgage (HECM) Overview:
The California Reverse Mortgage allows homeowners to stay in their homes as long as they wish without making a monthly mortgage payment—provided homeowner’s insurance and taxes are kept current, and the home is kept in good repair.
Not only does the California HECM eliminate monthly mortgage payments, but it can also be used to receive additional funds. How these additional funds are dispersed can be customized to suit each individual homeowner’s needs.
The amount of money that an eligible homeowner can receive depends on their age and the amount of equity they have in their home. There are absolutely no restrictions on what can be done with the funds disbursed from a reverse mortgage! The HECM becomes due when none of the original borrowers live in the home, if taxes or insurance become delinquent, or if the property falls into disrepair.
Important Facts About the California HECM:
- The HECM loan is Federally Insured
- You own your home – not the bank!
- You never make another mortgage payment while you live in the home.
- You can refinance or sell whenever you want with no penalty.
- The money you receive from this loan is tax-free.
- You can use your loan proceeds any way you wish. There are no restrictions.
- Reverse Mortgages are available to purchase a home too!
- Good Credit is not necessary to qualify.
- The Loan Proceeds may be received as any combination of:
- A lump sum Monthly payments to you In a Line of Credit to use when needed. And, the unused portion grows in value!
For a thorough consultation and answers to all your questions about reverse mortgages, please don’t hesitate to contact us, call 1-866-389-2778. During our discussion, we can address inquiries such as:
Do I qualify for a reverse mortgage? How much money can I get? Is a reverse mortgage right for me? How does a reverse mortgage work? What kind of reverse mortgage products are available to me?
Rest assured, there is no application fee. We look forward to assisting you with valuable insights tailored to your specific needs.
Important Disclosures:
This material is not from HUD or FHA and has not been approved by HUD or a government agency.
This general information is NOT a substitution for the advice of an attorney, accountant, and/or financial planner. Before you decide to pursue a reverse mortgage, you should carefully consider your individual circumstances so you can make a wise decision about the most valuable asset you may own—your home. Factors to consider include whether the proposed reverse mortgage is a recourse or nonrecourse loan, whether the loan would have a fixed or adjustable interest rate, and/or the current and projected market value of your home.
The lender will charge an origination fee, a mortgage insurance premium, closing costs or servicing fees for the reverse mortgage, all or any of which the lender will add to the balance of the reverse mortgage loan.
The balance of the reverse mortgage loan grows over time and the lender charges interest on the outstanding loan balance.
At the conclusion of the term of the reverse mortgage loan contract, some or all of the equity in the property that is the subject of the reverse mortgage no longer belongs to the person and the borrower may need to sell or transfer the property to repay the proceeds of the reverse mortgage from the proceeds of the sale or transfer or you must otherwise repay the reverse mortgage with interest from other personal assets. In order to retain the home when the reverse mortgage becomes due that (1) the consumer or the consumer’s heirs or estate must pay the entire loan balance and (2) the balance may be greater than the value of the consumer’s home.
The consumer retains title to the property that is the subject of the reverse mortgage until the person sells or transfers the property and is therefore responsible for paying property taxes, insurance, maintenance and related taxes. Failing to pay these amounts may cause the reverse mortgage loan to become due immediately and may subject the property to a tax lien or other encumbrance or to possible foreclosure.
Interest on a reverse mortgage is not deductible from the consumer’s income tax return until the consumer repays all or part of the reverse mortgage loan.
