California Reverse Mortgages Keep Seniors at Home

If you asked a senior citizen about the most important issue facing them during retirement, there is one response that you would likely hear over and over: "I want to remain independent in my home." A National Council on Aging study confirms this sentiment is common to approximately 95% of the population aged 65 and above.

Read into this statement a little and you will see that one of the major underlying factors is that seniors must have the finances to cover the costs related to remaining independent in their home. If the senior’s health wanes, it is likely that they will be faced with a myriad of expenses. The senior may need money to make their Medicare co-payments, pay for prescription drug costs, make changes to their home to improve their mobility, or to hire an in-home caretaker. With the number of services that cater to the unique needs of seniors today, they need only be able to afford the services they need in order to stay independent in their homes. Reverse mortgages in California, where seniors often have plenty of equity but may have little in the way of savings for income, may be the answer.

Seniors in California have more equity to tap into with a reverse mortgage than the vast majority of seniors in other states. The run up in California real estate values in recent years and the continued desirability of California as a place to call home, has given seniors who have owned their homes for at least 10 years a unique advantage. The price they paid for the home is probably a small percentage of its value today. As long as they did not cash out a significant portion of their equity through a home mortgage refinance transaction, then they ought to have plenty of equity to make a reverse mortgage the perfect solution. California reverse mortgage lenders recognize the equity that many seniors have and are often willing to lend them significant sums of money.

Since reverse mortgages do not require any monthly payments, the money that the senior receives from the lender does not create any new financial obligations. Moreover, the lender must also guarantee to the senior that they will not have to repay the money for as long as they live in the home, maintain it in basic livable condition, and pay their property taxes and insurance. With these benefits, it is clear that reverse mortgages in California can contribute tremendously to the ability of seniors to remain independent in their homes.