Mortgages Give Seniors Financial Security
April 9th 2006
Over 150,000 seniors have already benefited from reverse mortgages. A
California reverse mortgage is a 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 it or make
monthly mortgage payments.
The money can be used for anything, from daily living expenses, home
improvements, healthcare expenses, paying off existing debts, or simply
enhancing the retirement years. For many people, the money provides a
"financial security blanket," in case unexpected expenses arise.
You need not pay back the 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 and because it is not considered income, it is tax free
and will not affect Social Security or Medicare benefits. It is
recommended that a CPA be consulted regarding the specific situation.
A California reverse mortgage loan can help parents 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 avoid having to depend on relatives for financial assistance.
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, seniors
can never owe more than the value of their home when it is sold.
When the last-remaining parent passes away while living in the home, the
heirs simply pay off the reverse mortgage principal plus accrued
interest. If heirs want to keep the home in the family, a new
traditional mortgage can be arranged.
If no one in the family is interested in keeping the home, it can be
sold to repay the loan. Any money left over goes to the estate to be
shared according to the seniors' last wishes.
For more information on a California reverse mortgage loan please call
866 398 4664 or go to:
FreeFinancialConsulting.com offers free, no obligation, advice in all
areas of personal finance including insurance and home loans. In
addition to California reverse mortgage information, advice on other
mortgage products such as refinance and debt consolidation is available.
By Keith Hunt
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