What an interesting way to continue the Santa Cruz lifestyle to which one has become accustom, in these tough economic times.
A reverse mortgage on your Santa Cruz home can do so much for so many, at a cost. If you are a member of the "older peoples" club and are sitting on equity in your home this may be a way for you to enjoy the fruits of your labor, or if you are short on cash or in need of medical or long term in home care the equity in your Santa Cruz home can help.
The simple explanation is that you borrow against the equity in your home, either receiving structured payments or a single sum. When your heirs sell your Santa Cruz home the reverse mortgage is paid, or in some cases the reverse mortgage company sells your home to re-coup their money.
A reverse mortgage carries a heavy upfront fee, in many cases that is not a concern as there is no out of pocket costs. An example would be if your home is valued at $600,000.00 and is full paid off. You can receive a portion of the equity in cash to use to carry you for the balance of your life. In the case where you many have a small mortgage, that can be paid off and you can still receive a portion of the equity in cash.
If you are planning to will your Santa Cruz home to your heirs, this may not be for you. In several cases at the time of your death, when your home is sold there is nothing left for your heirs after the reverse mortgage is paid.
I know two people who recently have taken out reverse mortgages, and both are thrilled that they have cash available for day to day expenses, and some fun mindless joys as well.
Are you interested in Santa Cruz Real Estate,Buying or Selling Homes in Santa Cruz? Feel free to email me at Contact Me and I will be happy to provide you with information,listings and a FREE market analysis.