Bank of America Reverse Mortgage, Los Angeles

Posted by Charles D

March 4, 2010

About Bank of America Reverse Mortgage, Los Angeles

Bank Of America Reverse Mortgage Branch Los Angeles, California

A reverse mortgage is a unique type of loan that is only available to senior citizens. It is the exact opposite of traditional mortgage loan (home loan etc). A normal mortgage loan consists of a person borrowing an amount of money at the start and then paying it back over a stipulated period of time in equal instalments or EMI.

Contrary to this, in reverse mortgages, you pledge your own property but one thing is worth noting, there should not be any liabilities against the property. The bank or the lender gives the borrower a series of cash flow for a fixed period of time (in a mortgage, the borrower would give this back to the banker). Read on to learn more about Bank of America Reverse Mortgage, Los Angeles.

A few factors to consider for a reverse mortgage loan:

· The house owner should be at least 62 years of age.

· You can obtain a fixed percentage from the total value of the house.

· As a borrower you can opt for monthly, quarterly or annually interest.

· The lender keeps revaluating the property.

· The payments made by the lender or the banker, are not incomes they are loans hence one doesn’t have to pay tax on it.

· The rates of the reverse can be both floating and fixed.

How is this loan paid back?

These loans are primarily paid in two ways. No payment is made while the borrower is alive (any one of the couple) and they have the house as their primary residence.

· After the couple pass away, the loan is transferred to their heirs. They either settle the loan or retain the house.

· Or they allow the lender or banker to sell the house. The equity of the house is used to settle the loan and the remainder is given back to the heirs.

Why Bank of America Reverse Mortgage, Los Angeles?

Bank of America is one the leading banks in the world. Operating across the world – they are one of the best financial service providers. They have many years of experience in providing reverse mortgage loans. In 2009 alone they issued reverse mortgage loans worth $13 billion. Los Angeles has a population of almost 40 million people, out of which, 10 percent are above the age of 62 (criterion for reverse mortgage loans). The income and expenditure of the city is very high, which encourages luxurious lifestyles amongst its senior citizens. Bank of America Reverse Mortgage, Los Angeles is the right place for you.

California Department of Real Estate Reverse Mortgage Publication.