Reverse Mortgages In California Help Seniors With Cash Flow
California reverse mortgages are becoming extremely popular with seniors in this state since The U.S. Department of Housing and Urban Development (HUD) created one of the first.
?A reverse mortgage in California allows older Americans to supplement social security, meet unexpected medical expenses, make home improvements or take a vacation by converting a portion of the home equity into cash," states George Lincoln, Vice President of FreeFinancialConsulting.com
?FreeFinancialConsulting.com is not a mortgage broker but offer free advice
to the public on all personal money matters, including all home loans, and California reverse mortgages. California reverse mortgages are of interest to seniors and children that are concerned about their parents' financial well being in later years.?
?Unlike a traditional home equity line of credit (HELOC) or second mortgage, repayment is not required until the borrower no longer uses the home as a principal residence," continues Lincoln.
?To be eligible for a California reverse mortgage the borrower must be at least 62 years old, own the home and also live in it. The mortgage balance must be low enough that it can be paid off at closing with proceeds from the California reverse mortgage.?

?With a traditional second mortgage loan, or a California home equity line of credit (HELOC), there must be sufficient income versus debt ratio to qualify for the loan, and monthly mortgage payments are required. The California reverse mortgage is different in that it pays the homeowner and is available regardless of current income.?
?The California reverse mortgage amount depends on the borrower's age, current interest rates, the type of reverse mortgage selected and the appraised value of the home.?
?The loan is not repayable as long as one of the borrowers continues to live
in the house and keeps taxes and insurance current. Seniors quite often
use the money for medical treatment, home improvement or repairs, long-term
care insurance or just to supplement their income.?
?One important concern for seniors is that a reverse mortgage in California allows them to convert home equity to cash while retaining home ownership.?
?If the home is sold or no longer used as a primary residence, the homeowner
or the estate repays the California reverse mortgage, plus interest and other fees, to the reverse mortgage lender.?
?Because California reverse mortgages are considered loan advances and not income, the IRS considers them to be Not Taxable.?
The remaining home equity belongs to the homeowner or heirs. No other assets
will be affected by a reverse mortgage in California and the debt will never be passed along to the estate or heirs. ?
?Our seniors deserve financial peace of mind in later years and a reverse mortgage in California offers that," concludes Lincoln.
For more information on California reverse mortgage loans please go to
http://www.FreeFinancialConsulting.com or call 866 398 4664.


FreeFinancialConsulting.com provides advice to the general public on all personal money matters including home mortgage loans and reverse mortgages.


Beware! Zero Percent Interest Can Cost More Than You Think!
A common way people get into more debt than they can handle is by
falling prey to tricky marketing tactics, which cause them to
owe more than they bargained for.
Let us use an example of ?Zero Percent
Interest until July 2008? for an item purchased
in July 2007. Many people purchase expensive items under these
conditions, believing they get the item virtually ?free?
for 12 months, and can then start making payments in July 2008.


Note the offer carefully. The borrower is usually required to make
at least minimum payments throughout the ?no interest? period;
and while it may be true that no interest is attached to that minimum
payment, interest charges will accrue for that entire 12 months. In
July 2008, if the bill is not paid in full, the balance due or total
debt will be for the cost of the item plus 12 months worth of ?deferred
finance charges?; on top of which more interest will accrue.
The same holds true for ?No Payments Until?
offers. No payments are due, but if the debt is not paid off entirely
by the ?until? date, all of the accumulated interest will
then be added to the amount due, and additional interest will accrue
on the total balance. People will often purchase items under these conditions
with the mindset that they have ?x months? to come up with
the money. It may seem manageable at the time of purchase, but without
a dedicated pay off plan during the offer period, borrowers may find
themselves with a hefty balance owed at the end of the offer period.
Take the example of a couple that purchases a new couch for $1300 on
a 12-month ?no payments? offer. They could expect interest
rates in excess of 20% through the store financing and therefore should
anticipate interest due of $250 or more by the end of the 12-month period.
Unless the $1300 is paid off before the due date, the debt balance will
become $1550 instead of the original $1300. On top of that, the 20%
interest will now be charged on any outstanding monthly balance.
The only way to ?truly? have zero percent interest on either
offer, would be to pay off the item completely before the ?until?
date, but it is still a risk that should be carefully considered if
not altogether avoided.

About the Author:
Marie Spaulding is the founder of Debt Pay Off Plan. Through the use
of it's debt pay off calculator and custom month-by-month payment
plans, the company helps people strategically get out of debt, cut years
off their payments and save thousands of dollars that would otherwise
go to banks in interest payments.

http://www.debtpayoffplan.com