California Reverse Mortgage
Why would someone use a California reverse mortgage?
Fred is 65 years old and living in a modest but attractive Tahoe area home. His home is paid off and he retired about four years ago, shortly after his wife passed away. Fred may be retired but he is not ready to spend the rest of his days playing Gin Rummy with the boys.
In fact, in the next 18 months he is planning a trip to Europe, a cruise in the Bahamas, a weeklong rafting expedition on the Colorado… and then there is his friend Sylvia. Sylvia is long and tall and blond and she is not 65 years old…and Sylvia is very high maintenance indeed.
In truth, Fred’s fixed retirement income is not quite enough to meet the needs of his lifestyle. Fred knows that his home is worth a good deal of money and in years gone by, Fred would have had at least two options to finance his activities:
• He could have sold the house and supplemented his retirement with the proceeds. But he loves the place and besides, he would still need a place to live, or
• He could have refinanced his home and taken the equity out in cash. But now that he’s retired, it is doubtful that his lowered income level could qualify him for a standard mortgage.
But Fred is a pretty clever guy and he has a plan… he has applied for a California Reverse Mortgage. Here’s how it works:
• Fred selected a mortgage lender who is knowledgeable and experienced working with homeowners in his situation… in Fred’s case, he chose Raintree Financial.
• The lender examined Fred’s financial situation and recommended that he re-finance with a California Reverse Mortgage.
• After applying and qualifying, Fred’s loan was approved and closing was scheduled.
• However, this loan closing was different than any Fred had experienced before… Fred signed the paperwork, but at closing and each month afterwards, Fred received a check from the lender. Each check was enough to support Fred’s life style and still allow him to live in the home he had loved for over forty years.
Behind the scenes, here’s what was happening:
• Under the terms of Fred’s California reverse mortgage, the first month, the lender wrote Fred a check for a predetermined amount.
• The amount of that check became Fred’s loan balance and began accruing interest.
• In the second month, the lender wrote Fred another check. That check amount was added to the loan balance and it too began drawing interest for the lender.
• This continued each month for a specified term or until Fred passes away. At that time, the loan becomes due and will probably be paid by the proceeds from the sale of the property.
Under the right set of circumstances, a California reverse mortgage can be a very astute financial move… or a very serious mistake… the difference is often based on the mortgage lender that you select.
And the best mortgage specialist in the Lake Tahoe area is RainTree Financial… just fill out the “Quick Quote” form and you’ll see what we mean…
California Reverse Mortgage
Why would someone use a California reverse mortgage?
Fred is 65 years old and living in a modest but attractive Tahoe area home. His home is paid off and he retired about four years ago, shortly after his wife passed away. Fred may be retired but he is not ready to spend the rest of his days playing Gin Rummy with the boys.
In fact, in the next 18 months he is planning a trip to Europe, a cruise in the Bahamas, a weeklong rafting expedition on the Colorado… and then there is his friend Sylvia. Sylvia is long and tall and blond and she is not 65 years old…and Sylvia is very high maintenance indeed.
In truth, Fred’s fixed retirement income is not quite enough to meet the needs of his lifestyle. Fred knows that his home is worth a good deal of money and in years gone by, Fred would have had at least two options to finance his activities:
• He could have sold the house and supplemented his retirement with the proceeds. But he loves the place and besides, he would still need a place to live, or
• He could have refinanced his home and taken the equity out in cash. But now that he’s retired, it is doubtful that his lowered income level could qualify him for a standard mortgage.
But Fred is a pretty clever guy and he has a plan… he has applied for a California Reverse Mortgage. Here’s how it works:
• Fred selected a mortgage lender who is knowledgeable and experienced working with homeowners in his situation… in Fred’s case, he chose Raintree Financial.
• The lender examined Fred’s financial situation and recommended that he re-finance with a California Reverse Mortgage.
• After applying and qualifying, Fred’s loan was approved and closing was scheduled.
• However, this loan closing was different than any Fred had experienced before… Fred signed the paperwork, but at closing and each month afterwards, Fred received a check from the lender. Each check was enough to support Fred’s life style and still allow him to live in the home he had loved for over forty years.
Behind the scenes, here’s what was happening:
• Under the terms of Fred’s California reverse mortgage, the first month, the lender wrote Fred a check for a predetermined amount.
• The amount of that check became Fred’s loan balance and began accruing interest.
• In the second month, the lender wrote Fred another check. That check amount was added to the loan balance and it too began drawing interest for the lender.
• This continued each month for a specified term or until Fred passes away. At that time, the loan becomes due and will probably be paid by the proceeds from the sale of the property.
Under the right set of circumstances, a California reverse mortgage can be a very astute financial move… or a very serious mistake… the difference is often based on the mortgage lender that you select.
And the best mortgage specialist in the Lake Tahoe area is RainTree Financial… just fill out the “Quick Quote” form and you’ll see what we mean…