http://californiareversemortgage.net/

Reverse Mortgages are not new to California and senior borrowers who have already gotten a reverse mortgage can tell you the difference the loans have made for them in their lives. But the question for many California borrowers who have chosen to obtain a reverse mortgage is "which one is best for me and who should I use?". California reverse mortgages are a bit different than most of the nation in that the property values tend to be higher and therefore the loan amounts are as well. California reverse mortgage borrowers tend to carry more balances on their properties prior to the reverse mortgage which also affects their decisions. The reverse mortgage that is right is the one that is right for the individual borrower.

Californians can choose between a number of FHA-insured options (FHA stands for the Federal Housing Agency and is a division of HUD - the U.S. Department of Housing and Urban Development). At one time there were a number of jumbo or proprietary programs available too and as the markets continue to recover from the 2007/2008 crash, there should be more proprietary programs available again in the future. For the time being, the HUD program known as the Home equity Conversion Mortgage (HECM or "Heck-um") is pretty much the only reverse mortgage loan available for California senior borrowers but it does come with a number of options for receipt of the available funds. Borrowers have to first decide how they would like to receive their money.

Reverse mortgage loans in California, like the rest of the country, have several options for payment to the borrower. The borrower can choose a lump sum at closing; a line of credit that can be accessed as the borrower chooses; a monthly payment with can be set for a term (set number of years) or for a tenure which is a payment for life; or any combination of these choices. For example, a borrower who has $200,000 of available funds could choose to take a lump sum at closing of $50,000 for home repairs, bill payment, or whatever reason he/she chooses; could have a line of credit of $50,000 set aside for future expenses or needs and could have the remainder of the funds paid to him/her in a monthly payment that would be received for life or any term chosen. This is just one example and any combination could be chosen, but this is only available for payout this way with the adjustable rate loan.

Reverse mortgage borrowers who want a fixed rate also have that option, but the fixed rate has only one pay-out option available. Due to the fact that the fixed rate loan is a "closed-end instrument", there is only one payout and all the funds must be drawn at closing. For California reverse mortgage applicants needing all the funds for the payment of an existing loan, this is not an issue and actually a benefit in most instances. The fixed rates can never go up and borrower who need to use the majority of the funds in the first 12 months anyway tend to prefer this fact. There are also many times when the secondary market makes fees much less available to fixed rate borrowers.

The next decision borrowers have to make is whether they need all the funds available to them under the program and if not, if they should take advantage of the relatively new HECM Saver program. The saver program is available in the same fixed and adjustable rate options as the Standard program, but there is a twist. The Saver program does not give borrowers as much money as the Standard program.

For this, HUD lowered the Up-front Mortgage Insurance Premium (UFMIP)to just .01% of the appraised value or Lending Limit, whichever is less (the HUD Lending Limit is currently $625,500) instead of the 2% they charge for the Standard program. The fee is so minimal, some lenders are willing to pay the UFMIP for the borrower. For California reverse mortgage borrowers with larger, more expensive homes who don't need 100% of the HUD benefits, this can be a savings of up to $12,510 on the initial costs of their reverse mortgage. California borrowers seeking a reverse mortgage need to know how they want to proceed and how much of the HUD benefits they believe they will actually use. Those California reverse mortgage borrowers who can make use of the Saver Programs can drastically reduce their closing costs. (Use this free calculator to estimate your available reverse mortgage loan)

The next question for California borrowers looking for reverse mortgages is "Who should I use". Many seniors have a fear of falling prey to unscrupulous characters and several articles have pointed out the perils of working with a bad source. Seniors can save themselves a lot of worry by doing a very little bit of homework. Go on to the Better Business Bureau website and see what rating the company has and what previous customers have to say about the company. Check to see if your company is a member of a professional organization like the National Reverse Mortgage Lenders Association who require their members to meet certain ethics in operations and advertising. Ask for references.

All Reverse Mortgage (a California company), has a whole section of hand-written testimonials online for potential borrowers to view, but if you want to talk to someone, we have customers who have told us they would love to let others know how well they were treated. And finally, why would you not go with a company that gives you the best deal straight out of the box? It's amazing how many times we hear that a borrower was told that our pricing and fees just aren't available and yet, when pushed, some competitors then drop their pricing down to meet ours. That is just not dealing in good faith and if they were not honest with you about that, what else are they holding back?

California reverse mortgage borrowers deserve a company that does nothing but reverse mortgage loans; has closed all types of purchase and refinance transactions and know how to get the loans done. All Reverse Mortgage Company is just that: a company that does nothing but reverse mortgage loans. We are located in Southern California and we know what it takes to close loans for California Senior homeowners. California borrowers deserve nothing less.

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