Frequently Asked Questions About Reverse Mortgage Redding, CA

April 22, 2024

Frequently Asked Questions About Reverse Mortgage Redding, CA

By Published On: April 22nd, 2024Categories: Redding CA, Reverse Mortgage

A reverse mortgage in Redding, CA, allows homeowners to borrow money using their property as security for the loan. Unlike a conventional mortgage, you do not make monthly payments with a reverse mortgage. Instead, the loan repayment is done when the borrowers no longer live in the home or when they die.

If a reverse mortgage in Redding, CA, interests you and you plan to apply one of these days, it makes sense to learn more about it before you submit your applications. Here are some frequently asked questions regarding this particular mortgage option:

What are the requirements when you apply for a reverse mortgage?

  • You have to qualify for the age requirement, which is 62 years or older;
  • You have a clear property title; you must pay off existing liens on the property (if there are any), which can be done with funds obtained from the reverse mortgage or by other means;
  • You also need to keep your property in good condition;
  • It should be a primary residence to qualify for a reverse mortgage; other types of property, such as vacation homes, do not qualify.

Note: Talk to a qualified mortgage professional to learn more information about the requirements.

What are the key features of a reverse mortgage?

  • You will remain the owner of your home;
  • There are no monthly mortgage payments required (payments are after you move out or when you die);
  • You have the protection you need from the volatility of the housing market;
  • You also have different options to choose from for the disbursement of your loan

What happens if my home gains value?

Your equity increases when the value of your home increases. In the case of a reverse mortgage, if your home is sold to repay your loan when you decide to leave or after you pass away, you will leave more funds for your heirs. Remember, if there is a significant increase in value, you might want to refinance to withdraw more of the equity in your home.

Do you have more questions about a reverse mortgage in Redding, CA? Look no further than Homeplus Mortgage. Call us today at 800-810-PLUS (7587).