Reverse mortgages, San Jose, CA are one of the options you can take when shopping for home loan. But what exactly are the benefits of this particular type of loan. In this post, we’ll be sharing some benefits that might help you make the best option.
Monthly payment is not a requirement. This is why reverse mortgages are attractive to borrowers. Instead of paying monthly premium, payments are made to you; that is, as long as you live in your home. Indeed, quite different from a traditional forward mortgage.
You remain the owner of your home. Contrary to the popular belief that the lender takes ownership of your home, a reverse mortgage allows to remain as the owner of your property; that is, as long as you comply with the terms of the loan and religiously pay your insurance and taxes.
Medicare and Social Security benefits are not affected. Government benefit programs that do not test financial resources, such as Social Security and Medicare, are not affected by reverse mortgages. The reason for this is that reverse mortgages are considered loan proceeds and not income.
There are several options of disbursement. Lenders recognize the fact that each and every senior has different needs; thus, several disbursement options are available for you to choose from. You can choose to receive funds in full or partial sum, monthly payments, a line of credit, or a combination of any of the options.
Housing market protection. If there are market declines mortgage, no worries as you are protected. The reason is that reverse mortgages, San Jose, CA are insured by the government. With federal insurance, there is greater security. If the loan ends up to an amount that is more than the value of the home when sold, the government will shoulder the difference. Meaning to say, the loan will be paid in full using only the proceeds your home sells for, and no more.