Why You Can Trust Palm Desert Reverse Mortgages
A reverse mortgage loan is a big commitment, especially for homeowners with total equity in their homes. However, by working with a lender you can trust, like Palm Desert Reverse Mortgage, homeowners in Coachella Valley, CA can receive the loan they need without any additional worries. We personalize the entire mortgage counseling process to suit our customers’ needs and help ensure their comfort. With quality services such as this and our reverse mortgage calculator, we can offer you a competitively priced reverse mortgage loan with affordable fees.
What is a Reverse Mortgage?
A reverse mortgage loan is a useful form of money-borrowing available to homeowners, especially those with total or sizable home equity. As the name implies, a reverse mortgage is essentially the opposite of a standard mortgage. In a standard mortgage agreement, a borrower receives a loan from a lender to purchase a home. Then, the borrower makes payments to the lender and eventually repays the loan with some interest. Once the loan is paid off, the borrower wholly owns the equity – or monetary value – of the home.
For example, if a person purchases a home worth $500,000 with a 10% down payment of $50,000, they own $50,000 worth of home equity upon completion of the sale. Eventually, as a person sends monthly mortgage payments to their home loan lender, they accrue more equity until they own their home’s entire equity when the loan is finally paid off.
With a reverse mortgage loan, this process is flipped around. Instead of a homeowner paying a lender, a lender pays a homeowner. However, as the reverse mortgage lender pays the homeowner, the lender is obtaining equity in the homeowner’s home. Ultimately, how much of the home’s equity is transferred will depend upon the deal made between the homeowner and the lender.
In any case, the homeowner must be at least 62 years old. However, the older the homeowner is and the greater home equity they have, the greater the amount of money they will receive from a lender. For more information on reverse mortgage loans and how the process works, check out our Frequently Asked Questions page!
Benefits of a Reverse Mortgage Loan
Reverse mortgage loans from Palm Desert Reverse Mortgage can provide our customers in Coachella Valley, California with multiple benefits. Depending on their home equity, age, and more, homeowners in the area can receive payments for many reasons. As a result, homeowners in Coachella Valley, CA can experience:
- Receiving payments while living in their home
- Upgrading their current lifestyle
- Paying off bills (such as costly medical bills)
- Having a greater ability to address unexpected expenses
- Securing and accessing their funds for later