The writer is a reverse mortgage broker with numerous reverse mortgage clients.
Reverse mortgages lenders provide an opportunity to access the cash in your home without having to leave your home. The following points provide a quick overview of reverse mortgages in Canada.
Here’s a quick rundown:
~ You’re a homeowner who owes little or nothing on your house. You decide you need more money to live the lifestyle you want, but your biggest asset is your home and you certain don’t want to sell it to get the money you need.
~ A reverse mortgage lender figures out how much it can lend you based on your home value, your age, and interest rate and loans you some percentage of the money you would t gotten if you’d decided to sell your home.
~ You still own your home and continue to live in it, but you’re getting payments from the lender, so your cash flwo problem is solved.
~ You pay the loan back (with interest) only when you don’t live in the house full time anymore, usually due to moving out death.
~ You never owe more than your home is worth, no matter much you’ve accumulated in debt.
~ You keep any leftover equity after the sale of the house; if owe the lender $67,000 and your home sells for $200,000, put the difference in your pocket and walk away smiling.
Duncan Seward is a Vancouver mortgage broker. Mortgage BC is the focus of his business. He is an expert in bad credit mortgage refinance applications. Poor credit loans need not be a concern to clients with a damaged credit histories.