From uninsured medical bills, to prescription drugs, to home maintenance and even at home care, social security income alone often cannot cover all of a seniors' expenses.  Many Southern California seniors have found a solution to affording the high cost of living in our region with a Reverse Mortgage. And in addition to helping with daily necessities, some Californians are having a little fun with the money from their reverse mortgage. Many seniors are now using this payment-free home loan to take advantage of their home equity to enjoy a higher standard of living.

Seniors' Home Equity in Southern California

Generally, the longer the senior has owned their home, the better. Southern California Seniors who have owned their home for more than 10 years have probably seen a large increase in their home equity as real estate values have increased.  Despite a declining housing market, most long-term residents of Southern California still have plenty of home equity to support a reverse mortgage. And fortunately for homeowners, the lender (or FHA) assumes the risk of further drops in value once the reverse mortgage is obtained, so further home price depreciation will not affect the loan or amount of money available. This factor makes now an excellent time to apply for a reverse mortgage, before a senior is disqualified for a reverse mortgage due to further declines in home prices.

Reverse Mortgage Options

The average reverse mortgage for seniors in Southern California enables them to tap into over $200,000 of their home equity. And the more equity they have, generally the more reverse mortgage funds are available. Once the loan closes, there are numerous ways of taking the money out: as a lump sum to put in the bank, a line of credit to tap into at any time, an automatic month check or any combination of these options. There is always the option to repay the money early, which in most cases, increases the amount available for the future. Rather than being stuck with the inflexibility of a traditional mortgage, the Southern California senior's reverse mortgage can be customized to meet their specific needs and goals.

Luke Helm
Reverse Mortgage Specialist
New "outside blog" at http://reversemortgagescalifornia.activerain.com/