Reverse Mortgages & HECM Loans in CA
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Reverse Mortgages in Redding, CA
Traditional mortgages require that homeowners pay their lender on a monthly basis. The more money they pay, the more equity they gain. But many homeowners struggle to meet their mortgage and all their other financial responsibilities as they grow older. Because of this, the Home Equity Conversion Mortgage (HECM, also known as a reverse mortgage) was created.
Through a reverse mortgage, homeowners receive money from their lender instead of paying money to their lender. Such a loan can be extremely beneficial for homeowners who are planning on living in their homes for the long term and who are in need of extra financial assistance or security. US Lending can help you with Reverse Mortgages in Redding, CA
*Other restrictions and guidelines apply. Please contact lender for full program details.
What is a Reverse Mortgage?
A reverse mortgage allows eligible homeowners to access the equity in their homes in a variety of different ways, all of which are tax-free.
A reverse mortgage can be incredibly beneficial for homeowners in need of financial assistance or flexibility who are planning to live out the rest of their lives in their homes.

How do Interest rates work for a reverse mortgage?
Reverse mortgages come with either a fixed interest rate* or an adjustable interest rate*.
These interest rates are based on various factors, including the current market, the homeowner’s credit score, the amount of the reverse mortgage, and more. Interest is calculated daily and added to the balance of the loan monthly.
However, what makes a reverse mortgage unique is that the homeowner will not have to pay the loan back (or the interest on that loan) until the house is sold, the owner moves out of the house, the owner doesn’t meet their loan obligations, or the owner passes away.
How do payments work for a reverse mortgage?
The homeowner can receive their loan in several different ways. They can choose to receive monthly payments or a line of credit. However, the amount of cash available to the owner is based on the type of reverse mortgage that they choose. For example, an adjustable-rate reverse mortgage requires that the borrower chooses from a line of credit or monthly payments.
If the borrower chooses a fixed-rate reverse mortgage, access to funds is more limited. Although borrowers can still request monthly payments as well as a line of credit, they can only withdraw ten percent of their principal limit.
One important thing to keep in mind is that borrowers who choose to receive their reverse mortgage as a line of credit will only pay interest on the funds withdrawn, not the amount that is available to them. In fact, the money available in the line of credit will actually earn interest*.
What to do next?
FIND OUT IF YOU ARE ELIGIBLE FOR A REVERSE MORTGAGE
If you or your spouse are over the age of 62 and you have enough equity in your home, you may qualify for a reverse mortgage.
There are several factors that contribute to the qualification process and several different options to ensure that a reverse mortgage will give you a better quality of life. To find out if you or your spouse will qualify, fill out the form below to contact our reverse mortgage specialist.
WHAT CAN I USE MY REVERSE MORTGAGE FOR?
A reverse mortgage can be used in a variety of different ways to fit your lifestyle and your family. Many people use it to pay off an existing mortgage to stay in their home while others will use the additional income as a safety net.
Another option is a reverse mortgage for purchase, which could be used in a moving situation. Whether you are upsizing, downsizing, or relocating because of a divorce, a reverse mortgage for purchase will help make your transition into your new home smooth and easy.
REVERSE MORTGAGE DISCLAIMER
Reverse mortgages are loans offered to homeowners who are 62 or older who have equity in their homes. The loan programs allow borrowers to defer payment on the loans until they pass away, sell the home, or move out. Homeowners, however, remain responsible for the payment of taxes, insurance, maintenance, and other items. Nonpayment of these items can lead to a default under the loan terms and ultimate loss of the home. FHA insured reverse mortgages have an upfront and ongoing cost; ask your loan officer for details. These materials are not from, nor approved by HUD, FHA, or any governing agency.
For loan examples and more information visit our disclosure page at https://uslendingcompany.com/disclosures/