Usually when seniors receive California reverse mortgage quotes for their homes, they usually look like pages full of numbers that don't make much sense. In this article we'll try to explain the California reverse mortgage quote so that the senior homeowner, their heirs and advisors can make a good decision about the terms that are offered.
A California reverse mortgage quote shouldn't be confused with the results produced from one of the available online reverse mortgage calculators. These online calculators can prove to be very useful in that they, in an instant, can tell you whether you're likely to qualify for a California reverse mortgage. They will reveal how much money you may qualify for and in what forms you'll be able to receive it. However, the figures that online calculators generate will not answer many questions that senior citizens will have such as closing costs, interest rate details, and whether the programs presented are the best of all available choices.
A good California reverse mortgage quote should contain a couple of key elements. First of all: it should compare, in side-by-side columns, at least three California reverse mortgage programs. Under each column, will be a list of line items that will define the basic financial terms of each type of loan. Different lenders use slightly different quote forms, so this article will show you all of the most commonly-listed terms, each of which may or may not appear on your particular quote form.
Program Name Interest Rate Mortgage Insurance Expected Interest Rate Interest Rate Cap Credit Line Growth Rate Monthly Service Fee Estimated Home Value Lending Limit Principle Limit Service Fee Set-Aside Mortgage Insurance Premium Origination Fee Other Costs Net Principle Limit or Cash Available Debt Payoff Cash Draw Credit Line Tenure Payments Total Fees and Costs Seniors who live in California are well advised that a comparison of three California reverse mortgage programs is probably not going to be sufficient due to the high home values and number of programs available. Ask your lender for a quote on at least six programs in order to be sure that you get the best possible quote.
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