Work with Reverse Mortgage Los Angeles California a licensed and insured company with good reputation and get reverse mortgage with variable or fixed interest rates.

1. No More Mistakes With Reverse Mortgage!
Before we discuss the various attributes of reverse mortgage, you must
understand that there hardly any loan without a downside. This is a type of
loan that can provide elders with much needed consistent source of income
after retirement. All loans including this one are taken to make the most out of
any financial situation. Here is the thing; you can cut the downside if you
choose your reverse mortgage California very carefully. This blog post will
discuss some of the common misconceptions people have about this loan.
Pay Attention During Counseling
Frist of all you should know that there are a whole lot of rules and regulations
laid down by U. S. Federal Housing Association (FHA) to protect borrowers.
Since reverse mortgage is offered to only senior citizens (applicant must be
minimum 62 years old), the federal government has made it mandatory that
the applicants must go through a counseling before applying for loan. There
are plenty of nonprofit counseling centers one can approach. The lender itself
will provide the list. Many senior citizens take these counseling sessions lightly
and later complain about the bad deal they got. This is your first step towards
avoiding any mistakes.
Your Souse Is A Co-borrower

2. The amended rules also state that any lender should and must sign applicant’s
spouse as a co-borrower even if she/ he is not 62 years old at the time of the
application. This rule will effectively allow your spouse to live in the same
house even after your death while the reverse mortgage still continues. Make
sure that your lender complies with this rule.
Calculate How Much You Can Borrow
Before moving forward with your application you must check how much you
can borrow. In fact your lender should provide you with detailed quote
describing how much money you can receive and in how many installments.
Most of the lenders have online reverse mortgage calculator that can be used
to calculate loan amount. However this method is not quite accurate, you
should ask the borrower for a fair estimate anyway. FHA has also placed
restriction on how much of your loan can be disbursed in first installment,
limited to no more than 60 percent of whatever the homeowner is allowed to
borrow
Interest Rates
California's Reverse Mortgage Elder Protection Act of 2009 states that a
reverse mortgage interest rates can be either fixed or variable. Fixed interest
rates will remain same throughout the loan tenure. This means if inflation goes
up you might pay less than average market rate saving money while it goes
down you will pay more than average market rate. On the other hand variable
reverse mortgage interest rates will change as per the market conditions.
You should choose the type depending on your requirements and as discussed
during counseling sessions.
Closing Cost & Origination Fees
Both Closing Cost & Origination Fees can be significantly higher than
conventional loans, plus you need to pay them up front. If you don’t have the
cash these will be added to the reverse mortgage amount with interest. You
can bargain with your lender about these but still these costs are higher.
Property Tax, Insurance etc.
Your property needs to be in perfect order both physically and financially. Even
though you can get reverse mortgage California, you still have to pay

3. property tax, home insurance, flood insurance etc. by yourself. You should
check it with the counselors as to which expenses should be borne by the
borrower. The point is you cannot use you loan money to pay any of these bills.
However you can pay back your existing home mortgage with this loan amount.
And yes, keep your property out of any legal warfare as long as possible.
Reverse mortgage lenders particularly don’t like disputed properties.
Work With Licensed Lender
Although last, this is the most important point. You must work with only a
licensed and insured lender with good reputation. This is very important since
all the FHA rules, regulations and concessions are applicable to only licensed
and insured reverse mortgage lenders. If you keep these points in mind, you
should do just fine. A little homework is the key to a comfortable and happy
retired life.